A big rally first or another dead cat bounce?

BTC at a crossroads: a surge to $75,000 or a correction to $65,000?

The leading cryptocurrency has shown remarkable resilience amid ongoing military conflicts in the Middle East, rising to a monthly high of around $72,000 at one point.

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

Will there be more profits in the future?

The war between the United States (backed by Israel) and Iran has dominated global attention as the conflict escalates, geopolitical alliances are reshaped and uncertainty rises across financial markets. Bitcoin (BTC) reacted negatively to the initial attack over the weekend, with the price dropping below $64,000.

But over the next few days, it regained some ground, rising to nearly $72,000 a few hours earlier, its highest in almost a month, before falling to its current level of $71,000. A potential catalyst for a comeback could be new reports that Iran has offered to discuss terms for ending the war.

Several analysts noted BTC’s resurgence and argued that it may still have the fuel to record additional gains. The popular trader, who goes by the nickname X and Crypto Tony, believes that regaining $71,500 could open the door for a rally to $74,000. X user exitpump shares a similar theory, suggesting that a retest and hold of the $70,000 level could pave the way for a rally above $75,000.

Ash Crypto contributed as well. The analyst, who has over 2 million followers on the social media platform, said BTC’s weekly relative strength index (RSI) has fallen to an all-time low. This means that the price has fallen too low in a short period of time and the asset is oversold and ready for a potential comeback. Additionally, Ash Crypto outlined that investor sentiment has reached maximum fear, a development that could mark the bottom of the cycle.

Bears aren’t done yet

X user Ted drew an interesting parallel between the Russia-Ukraine war and the current Middle East conflict. He reminded that BTC experienced a massive rally immediately after the Russian invasion in February 2022, and speculated that history could repeat itself and the asset could soar to $80,000 in the near future. However, Ted warned that the 2022 rally will be short-lived and will be followed by a big pullback, suggesting a similar pattern could play out in the coming weeks.

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Prior to that, analysts argued that a daily close above $70,000 would “be good for the market.” At the same time, he warned that failure to sustain above that mark could lead to a retest of the $65,000-$66,000 support zone.