Major rally ahead or another dead cat bounce?

BTC at Crossroads: Rise to $75K or Correction to $65K?

The primary cryptocurrency showed remarkable resilience amid the military conflict in the Middle East, briefly reaching a monthly peak of around $72,000.

The big question now is whether this is the start of a real breakout or just another bull trap.

Further successes ahead?

The war between the US (backed by Israel) and Iran has dominated the world’s attention as the conflict escalates, shifts geopolitical alliances and increases uncertainty in financial markets. Bitcoin (BTC) reacted negatively to the initial attack over the weekend, dropping below $64,000.

However, in the following days, it recovered some of the lost ground, while a few hours ago it hit a one-month high of around $72,000, before falling back to the current $71,000. One possible catalyst for the revival could be reports that Iran has offered to negotiate terms for ending the war.

Several analysts have noted BTC’s resurgence, claiming it may have more fuel left for further growth. A popular trader using the name X Crypto Tony believes that a withdrawal of $71,500 could open the door to $74,000. X user exitpump shared a similar thesis, suggesting that a retest and hold of the $70K level could pave the way for a move above $75K.

Ash Crypto also entered. BTC’s weekly Relative Strength Index (RSI) has hit an all-time low, the analyst with over 2 million followers on the social media platform said. This means that the price has fallen too far in a short period of time, oversold the asset and is ready for a potential reversal. In addition, Ash Crypto noted that sentiment among investors is at maximum fear: a development that could mark the end of the cycle.

The Bears aren’t done yet

X User Ted draws an interesting parallel between the Russia-Ukraine war and the current conflict in the Middle East. He recalled that shortly after the Russian attack in February 2022, BTC experienced a huge pump and estimated that history may repeat itself and the assets will rise to 80 thousand dollars in the near future. However, Ted warned that the rise in 2022 was short-lived and was followed by a major pullback, hinting that a similar pattern could emerge in the coming weeks.