Bitcoin is trading near $72,791, showing price recovery as its market dominance approaches 60%. However, on-chain data reveals persistent trader caution stemming from a sharp February drop. Analysts note parallels to 2022, when geopolitical conflict sparked a short-lived Bitcoin rally before a severe 67% crash, creating uncertainty about the current recovery’s sustainability.
Bitcoin gained about 1.82% to trade near $72,791, with its market dominance climbing toward the key 60% level. Despite the positive price movement, Santiment’s Weighted Sentiment indicates traders remain cautious following a sharp market decline in early February.
Market fear is partially driven by memories of a 2022 pattern following Russia’s invasion of Ukraine. Bitcoin initially surged nearly 40% as a perceived safe haven before eventually dropping about 67% from its highs. Rising U.S.-Iran tensions have led some traders to think a similar short-term rally toward $78,000–$80,000 is possible.
Nic Puckrin, co-founder and lead analyst at Coin Bureau, commented on the parallel via email, stating, “As markets open after a tumultuous weekend, there’s a great deal of fear that we may be staring down the barrel of a 2022-style energy shock.” He added, “But it’s too early to say if the same scenario will play out.”
Analyst Ali Martinez added that on-chain data and technical structure support a potential relief rally. He noted aggressive accumulation by spot ETFs and thin supply above current prices, suggesting the next major resistance zones lie around $83,307 and $84,569.
Recent data from CryptoQuant showed nearly $1.8 billion in sell volume hit Bitcoin within an hour of the U.S. attacking Iran. The asset held above the critical $60,000 level despite this pressure, showing resilience during heightened geopolitical tension.
The market may be stabilizing or pausing before a deeper correction. Bitcoin’s ability to maintain support above $60,000 remains a key signal for traders watching closely.
