Bitcoin (BTC) Nears $72,000: Major Rally Ahead or Another Dead-Cat Bounce?

The primary cryptocurrency has shown remarkable resilience amid the ongoing military conflict in the Middle East, briefly rising to a monthly peak of almost $72,000.

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

Further Gains Ahead?

The war between the USA (supported by Israel) and Iran has dominated global attention as the conflict intensifies, reshaping geopolitical alliances and fueling uncertainty across financial markets. Bitcoin (BTC) reacted negatively to the initial attack over the weekend, with its price plunging below $64,000.

In the following days, though, it reclaimed some of the lost ground, while several hours ago it pumped to a one-month high of nearly $72,000 before retreating to the current $71,000. A potential catalyst for the revival could be emerging reports that Iran has offered to discuss terms for ending the war.

Multiple analysts noted BTC’s resurgence, claiming it may have more fuel left to post an additional increase. The popular trader, using the X moniker Crypto Tony, believes a reclaim of $71,500 could open the door to a push to $74,000. X user exitpump shared a similar thesis, suggesting that a retest and hold of the $70K level may pave the way for a move above $75K.

Ash Crypto also chipped in. The analyst with more than 2 million followers on the social media platform said BTC’s weekly Relative Strength Index (RSI) has plunged to an all-time low. This means the price has dropped too much in a short period, making the asset oversold and ready for a potential comeback. Additionally, Ash Crypto outlined that sentiment among investors is at maximum fear: a development that could have marked the cycle bottom.

The Bears Are Not Done Yet

X user Ted drew an interesting parallel between the Russia-Ukraine war and the current Middle East conflict. He reminded that shortly after the Russian invasion in February 2022, BTC experienced a major pump, speculating that history could repeat itself and the asset may soar to as high as $80K in the near future. However, Ted warned that the surge in 2022 was short-lived and followed by a major pullback, hinting that a similar pattern might unfold in the coming weeks.

Prior to that, the analyst argued that a daily close beyond $70,000 “will be good for markets.” At the same time, he warned that failing to hold above that mark could lead to a retest of the $65,000-$66,000 support zone.

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