Bitcoin Drops 1.7% Amid Geopolitical Tensions, Eyes New High

Bitcoin, the leading cryptocurrency by market capitalization, has experienced a 1.7% decline over the past 24 hours due to escalating tensions between Israel and Iran, which have triggered a global de-risking trend across risk-on assets. Despite this recent downturn, technical indicators suggest that Bitcoin could potentially reach a new all-time high in the coming months.

According to a recent analysis by crypto analyst Titan of Crypto, Bitcoin appears to be following the ABCD pattern. This pattern is characterized by four points and three legs – AB, BC, and CD – where AB and CD are typically equal in length, and BC serves as the retracement. The analyst noted that Bitcoin is currently trading within a wedge formation and could target as high as $137,000 if it breaks out. The ABCD pattern helps identify potential reversal zones and signals when a price move may be losing momentum.

Several other technical indicators also point to a potential new all-time high for Bitcoin. Crypto analyst Crypto Caesar highlighted a bullish double bottom pattern on the 4-hour Bitcoin chart, suggesting that Bitcoin is primed for recovery. Additionally, crypto commentator Jelle identified a cup and handle pattern on the daily Bitcoin chart, indicating that Bitcoin has already formed the “cup” and is now beginning to shape the “handle,” which typically precedes a sharp upward move.

Crypto trader Merlijn the Trader pointed to the Hash Ribbons, an on-chain indicator historically associated with major rallies. The Hash Ribbons use Bitcoin’s 30-day and 60-day hash rate moving averages to spot miner capitulation and recovery. A bullish signal appears when the short-term average crosses above the long-term one. According to the analyst's forecast, the last four appearances of this signal preceded strong Bitcoin uptrends.

Despite these bullish indicators, there are some concerning signs emerging for Bitcoin. The cryptocurrency was recently rejected from the $110,000 resistance level, giving bears temporary control. On-chain data shows that long-term holders are beginning to exit the Bitcoin market, and retail investors are starting to join in. Such dynamics are typically observed during the late phase of a bull cycle. Additionally, short-term holders are showing signs of declining confidence in Bitcoin, as reflected in recent on-chain activity. At the time of writing, Bitcoin trades at $105,568, down 1.7% over the past 24 hours.