On Wednesday, the crypto market began to recover, and BTC regained part of its recent losses caused by the escalation of conflict in the Middle East. The price once again moved toward higher levels.
Some observers see this as a sign of market strength and a possible bottom formation. However, other analysts warn that the current growth may be short-lived.
Bitcoin Shows Resilience Amid Rising Geopolitical Risks
On Wednesday, BTC gained 8.3% and rose above $72,000 for the first time in a month. Since early February, the cryptocurrency has been moving in a range of $63,000–$73,000. During this time, the price has not managed to hold above $70,000.
The escalation of conflict between the US, Israel, and Iran has increased volatility in the markets. Cryptocurrencies have also come under pressure. On Saturday, there was a sharp sell-off, and BTC fell to $63,000.
After that, the price stabilized closer to the middle of the range. At the start of the week, bitcoin partially recovered and rose above $68,000.
From the recent lows, BTC has grown by about 15.87%. On Wednesday morning, the price reached a monthly high of $73,479. This happened despite ongoing geopolitical tensions.
In the Bits + Bips podcast, CoinFund managing partner and president Chris Perkins noted the market’s resilience. In his opinion, signs of strength and liquidity inflows may indicate a bottom is forming.
In the past two days, about $683.34 million has flowed into bitcoin ETFs in the US. This shows that investor interest in such instruments remains high.
Chief market analyst at FxPro Alex Kuptsikevich told Bloomberg that cryptocurrencies are attracting more attention from market participants.
“This is a victory for cryptocurrencies, given the strong sell-off in financial markets and gold the day before,” he said.
According to him, some traders may view cryptocurrencies as a possible safe-haven asset.
It Is Too Early to Call a BTC Bottom
Alex Kuptsikevich believes it is too early to say a market bottom has formed. In his assessment, the market situation remains fragile.
He noted that BTC is still dependent on stock market dynamics. When index volatility rises, institutional investors usually reduce leveraged positions.
See also: Eric Trump Criticized Banks for Pressure Against Stablecoins
Ted Pillows also believes that the current growth may be short-lived. He compared bitcoin’s current dynamics to the events of early 2022, when the war between Russia and Ukraine began.
At that time, the market first reacted with sharp swings. Over the next month, BTC rose by almost 40%.
After that, growth quickly turned to decline. The price of bitcoin eventually fell by about 67%.
BTC may fall to $40,000 (correction of about 45%). Source: Ted Pillows
This time, bitcoin is showing similar dynamics, the analyst noted. In his assessment, the price may first rise by 20–25% and test the $78,000–$80,000 zone. However, a sharp pullback is possible at this level.
If the scenario repeats, the next phase of decline may begin soon. According to Ted Pillows, this could lead to a drop of about 45% from the assumed peak of the current rally.
Analyst Ali Martinez also noted that over the past ten years, bitcoin has most often formed a bottom in the 1.0–0.8 MVRV Pricing Bands range. According to his calculations, the potential bottom zone is now between $43,647 and $54,559.
At the time of publication, BTC is trading around $73,255, which is about 10% higher than a week ago.
BTC price dynamics on the weekly chart. Source: TradingView
