In-Depth Analysis: Bitcoin’s Resilience Amid Geopolitical Tensions
Bitcoin’s remarkable resilience continues to captivate investors, even as geopolitical tensions escalate. In the face of rising conflicts, notably between Israel and Iran, Bitcoin has maintained its crucial $104,000 support level and is now venturing into higher price territories. This robust price action underscores the stronghold of bullish momentum despite global market uncertainties.
Growing Demand from Permanent Holders Signals Bullish Outlook
Recent on-chain analysis from CryptoQuant reveals a significant trend: an accelerated demand from Permanent Holders. These holders, consisting primarily of long-term investors and institutional players, are pivotal in shaping Bitcoin’s supply dynamics. Characterized by a lack of frequent selling activity, Permanent Holders are the most steadfast participants in the Bitcoin ecosystem, often buying and holding through market volatility.
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With this rising demand and stable price support, Bitcoin appears poised for a potential upward trajectory—given that broader macroeconomic conditions remain favorable. The market is now closely watching the $109K and $112K resistance levels, which could serve as critical benchmarks for Bitcoin’s next move.
Consolidation Phase Strengthens as Permanent Holders Accumulate
Bitcoin has been in a consolidation phase in recent weeks, following a volatile start to 2025. The year kicked off with macroeconomic challenges, including new trade tariffs imposed by US President Donald Trump, which disrupted global trade. In addition, rising US Treasury yields indicated growing risks within financial markets, causing uncertainty across various asset classes. Geopolitical tensions further intensified with the conflict between Israel and Iran, leading to increased oil prices and market volatility.
Despite these challenges, Bitcoin has demonstrated impressive resilience by maintaining support above the $104,000 mark, with bullish pressure remaining strong. This resilience during global unrest reflects a growing investor confidence and a potential for significant upward movement.
CryptoQuant’s insights highlight an increasing demand from Permanent Holders, who exhibit long-term conviction and contribute to reduced market liquidity. Rising demand from this cohort typically signals optimism for future price appreciation and has historically preceded major bullish trends.
The structural demand trend, coupled with Bitcoin’s resilience to macroeconomic volatility, indicates that the market is quietly building strength for a significant move. Should geopolitical tensions ease and macro conditions stabilize, Bitcoin could break out and potentially retest its $112,000 all-time high, setting the stage for the next phase of its cycle.
BTC Bulls Reclaim Key Moving Averages
Bitcoin is currently displaying renewed strength after rebounding from the critical $103,600 support level. The 4-hour chart shows a decisive move above the 50, 100, and 200-period Simple Moving Averages (SMAs), signaling a shift in short-term momentum favoring the bulls. Bitcoin now trades at $107,057, consolidating just below the $109,300 resistance—a formidable barrier in recent weeks.
The reclaiming of key moving averages, particularly the 200 SMA, suggests increasing demand. The surge in volume during the recent push further validates this breakout attempt. The $103,600 level remains a critical support to monitor for any potential downside move, as it has consistently served as a launch point for previous rallies.
To confirm the continuation of the uptrend, Bitcoin must break above the $109,300 resistance with a strong candle close, ideally retesting it as support. If the resistance holds, traders might anticipate a retest of the $105K-$106K range, which aligns with the moving average cluster now acting as support.
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