Recently, Bitcoin briefly fell below $100,000 amid tensions in Iran and attacks on Israel and U.S. bases in Qatar. However, after the ceasefire announcement, the cryptocurrency's price began to rise.
Rapid Decline and Recovery of Bitcoin
Bitcoin dropped below $100,000 during the 12-day conflict between Israel and Iran, leading to market fluctuations. However, following U.S. President Donald Trump's announcement of a ceasefire, Bitcoin started to recover and surpassed the $106,000 mark on Wednesday.
Beginning of a New Bull Cycle?
Bitcoin, having reclaimed its 50-day Exponential Moving Average (EMA), could see significant growth, potentially reaching $120,000. According to CryptoQuant, when Bitcoin swiftly recovers after dipping below this level, the market often reacts with a rapid surge of 10-20%. Currently, Bitcoin has closed above the 50-day EMA for three consecutive days, indicating a revival of bullish momentum.
Psychological Support Level
The Short-Term Holder Realized Price (STH-RP) stands at $98,000, serving as a crucial psychological and technical support for Bitcoin. The current Bitcoin price is $106,400, reinforcing the six-figure mark as a new perceived fair value. Data confirmation shows a bullish structure, while long-term holders remain inactive with a cost basis of $32,000.
Thus, despite external geopolitical factors and short-term volatility, current technical and on-chain indicators support Bitcoin's growth potential, while the support at $98,000 acts as an important barrier for further movement.
