Bitcoin Demonstrates Resilience Amid Middle East Conflict
Key takeaways:
- Bitcoin rebounds from a 5.5% drop after latest Israel-Iran conflict escalation, repeating a pattern seen in October 2024.
- Analysts highlight a bullish fractal involving liquidity grabs, suggesting BTC could soon break toward new highs.
- Macro tailwinds and whale accumulation support potential rally to $150,000 or higher in 2025.
The Bitcoin Response: Sharpening a Known Pattern
Bitcoin (BTC) displayed classic signs of bullish rejection Friday, shrugging off a sharp 5.5% sell-off ignited by renewed hostilities between Israel and Iran. After finding support around $102,800, the cryptocurrency recovered to surpass $105,500.
The recovery mirrored Bitcoin’s performance in October 2024, when a missile attack by Iran on Israel caused an 8.8% drop. That time too, support was decisively found near the $60,500 level, eventually sparking an 80% rally.
Bulls Defend the 2024 Trend
The technical setup warrants close monitoring. The recent bounce confirmed a retest of the 50-day Simple Moving Average (SMA), a historically significant support level expressed as a red wave on price charts.
This pattern reinforces Bitcoin’s tendency to oscillate around certain key levels even as its underlying trend remains upward. Onchain data adds another layer to this bullish narrative, confirming “whale accumulation” during recent price dips.
A Look at Broader Geopolitical Trends
A study by ETC Group highlights Bitcoin’s consistent post-geopolitical event trajectory. Short-term pullbacks occur during global uncertainty, but historically recover within about 50 days, often exceeding previous price points.
The current pullback contrasts with simultaneously strengthening macro tailwinds, including increasing probability of Federal Reserve rate cuts and signs of easing US-China trade tensions, potentially fueling longer-term gains.
Setting the Stage for a “Liquidity Grab”
Analyst Merlijn The Trader identifies another catalyst. His analysis points to a “liquidity grab” fractal pattern, comparing the current market structure to the pre-$100,000 breakout seen after the October 2024 conflict.
“In 2025, it’s setting up again,” predicted The Trader, observing the potential for a similar rapid price acceleration following current consolidation.
Looking Ahead: Price Targets and Analyst Views
The confirmation of this bullish technical pattern positions Bitcoin as a candidate for significant appreciation in the coming months. Many analysts forecast a rally to new yearly highs in 2025, with explicit targets ranging from $150,000 to over $200,000, drawing parallels to the dramatic price action of previous years.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
