- Bitcoin rebounded from $102,600 to $106,000 before settling at $105,200, amid escalating Middle East tensions.
- Altcoins and crypto stocks suffered heavier losses, with Circle bucking the trend on stablecoin optimism.
- Analysts warn of a potential deeper correction to $88K–$93K before Bitcoin resumes its push toward $130K.
The crypto market saw a modest recovery after Friday’s panic-driven dip triggered by the intensifying conflict between Israel and Iran. Bitcoin briefly fell to $102,600 before bouncing back to around $106,000, though it later retraced slightly amid reports of fresh airstrikes. As of now, BTC is down 1.6% over the past 24 hours, trading at $105,200 and still within striking distance of its all-time high.
Altcoins and Crypto Stocks Remain Under Pressure
While Bitcoin managed a mild recovery, broader market indicators remain in the red. The CoinDesk 20 index dropped 4.4%, with altcoins like ether, avalanche, and toncoin falling between 6% and 8%. Crypto stocks mirrored the weakness, particularly bitcoin miners like MARA and RIOT, which declined by 5% and 4% respectively. One bright spot was Circle (CIRCL), whose shares rose 13% amid excitement over potential stablecoin adoption by Amazon and Walmart.
Traditional Markets Stable, Analysts Divided on Bitcoin’s Trajectory
Despite geopolitical tensions, traditional markets stayed relatively stable. Gold rose 1.3%, reflecting safe-haven buying, while the S&P 500 and Nasdaq each slipped only 0.4%. Analysts remain split on Bitcoin’s near-term outlook. Skew noted the market’s resilience, while Markus Thielen from 10x Research cautioned that BTC’s drop under $106K represents a failed breakout. He advised traders to wait for better setups, with a key support zone between $100,000 and $101,000.
Potential for Deeper Correction Before Rebound
John Glover of Ledn suggested that Bitcoin may be in a corrective phase that could dip as low as $88,000–$93,000. However, he believes this move would simply set the stage for a larger rally toward $130,000. If BTC revisits the $90,000 range, he considers it an ideal entry point for investors betting on a continued bull cycle.
