The cryptocurrency market is currently experiencing heightened volatility, particularly with Bitcoin (BTC) fluctuating dramatically. Recently, the price dipped below $99,000 before rebounding to over $106,000 within a span of just 24 hours. Bullish Bitcoin Setup Amid Geopolitical Tensions In a recent post on social media platform X (formerly Twitter), analyst Cyclop suggested that despite the current market conditions, BTC exhibits a bullish setup reminiscent of the patterns seen in March 2020. The analyst noted that Bitcoin appears to be mirroring its past movements, with a brief dip followed by a rally for both BTC and altcoins. Cyclop drew parallels between the ongoing geopolitical tensions involving Israel, Iran, and the US and the market dynamics observed during the COVID-19 crash. Related Reading: Dogecoin About To Explode? ‘Don’t Send It Too Hard,’ Analyst Warns While acknowledging that geopolitical strife and global market panic are distinct issues, he pointed out that both scenarios resulted in sharp but temporary sell-offs followed by swift recoveries. According to Cyclop, the current market setup displays similar characteristics: widespread fear, a risk-off sentiment among investors, and global uncertainty. He emphasized the importance of understanding the timing of resolution to these tensions, suggesting that for a robust rally, several bullish catalysts are necessary to alleviate market uncertainty. He identified three key factors: potential interest rate cuts, a ceasefire between Iran and Israel, and Bitcoin holding crucial support levels. $120,000 By Year-End? Recently, a ceasefire was declared following 12 days of intense conflict between Iran and Israel. In a notable public statement, President Donald Trump criticized both nations, suggesting that their actions were misguided. This period of relative calm is seen as a positive indicator for the market. Cyclop highlighted that maintaining the $100,000 level for Bitcoin was crucial, and the cryptocurrency has successfully broken through the $106,000 barrier, signaling further growth. Furthermore, Ethereum (ETH) has also shown signs of a quick recovery alongside Bitcoin with its price nearing the key $2,500 level. Cyclop advised investors not to attempt to time the market perfectly, as reversals can often feel unsettling and uncertain. Related Reading: Ethereum Bounces Hard After Support Bluff, A False Alarm Or Fresh Rally? Looking ahead, Cyclop anticipates a consolidation phase for Bitcoin within the $102,000 to $106,000 range, with expectations of a breakout that could push BTC to an all-time high of around $120,000 by November or December of this year. As of this writing, Bitcoin is trading at $106,500 per coin. Despite ongoing economic uncertainties, the market’s leading cryptocurrency has seen a 75% increase year-to-date. However, Bitcoin is still trading nearly 5% below its record high of $111,800, which was reached on May 23. The most important resistance level is $110,200, which has prevented a new price discovery phase for Bitcoin on two occasions. Featured image from DALL-E, chart from TradingView.com
