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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.
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.
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.
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.
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 markets 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