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Bitcoin (BTC) has prepared to launch an explosive catch-up rally, breaking free from the immense pressure of the Middle East's geopolitical crisis and belatedly joining the rebound trend of global risk assets.
According to crypto-asset media outlet CryptoPotato, a cryptocurrency analyst predicted on April 10 (local time) that Bitcoin's price would see a sharp rise when geopolitical tensions ease. Recently, escalating conflict between Iran and Israel has dampened investor sentiment across all risk assets, including Bitcoin, but once the uncertainty of the conflict is resolved, suppressed buying pressure is expected to erupt all at once. The analyst observed that Bitcoin is currently in a stagnant phase, not keeping pace with the recovery speed of other risk assets.
The macroeconomic environment is sending favorable signals to Bitcoin. The U.S. Consumer Price Index (CPI) was announced lower than expected, increasing expectations for decelerating inflation, which in turn raises the possibility of interest rate cuts by the U.S. Federal Reserve (Fed). The analyst explained that the market has already begun to price in the peak of inflation, and if only geopolitical risks are removed, Bitcoin will be the asset to show the strongest rebound. As risk appetite revives, the power to determine Bitcoin's price is shifting back to buyers.
Inflows from institutional investors also provide strong support, securing price floor stability. Continuous net inflows through Bitcoin spot ETFs are reducing the market's available supply, signaling a potential supply shock. The analyst noted that even amidst geopolitical crises, institutions have continued to accumulate Bitcoin, trusting it as a long-term store of value. This institutional buying base offsets the psychological anxiety of retail investors and strengthens the market's fundamental health.
Technical indicators support the possibility of Bitcoin's full-fledged catch-up rally. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are sending recovery signals from oversold levels, and defensive strength has been confirmed at the key support level of $70,000. The analyst concluded that there is a very high probability that Bitcoin will experience a sharp price increase in the short term to catch up with the rebound of other tech stocks and the broader stock market. The longer the sideways trading period, the more powerful the energy will be upon an upward breakout.
The crypto-asset market is showing signs of overcoming short-term volatility caused by geopolitical news from the Middle East and resuming its long-term upward trend. The two axes of decelerating inflation and expanding institutional demand are firmly intertwined, supporting Bitcoin's price increase. Investors are closely monitoring any de-escalation of the conflict and are rebalancing their portfolios in anticipation of a full-scale price surge. Bitcoin is solidifying its position as the most attractive investment in the midst of global liquidity expansion.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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