Bitcoin Recovers Slightly Amid Israel-Iran Tensions, Analysts Warn of Deeper Pullback

Bitcoin (BTC) briefly bounced back after dipping to $102,600 early Friday due to escalating conflict between Israel and Iran. The cryptocurrency rebounded to near $106,000 but slipped again during U.S. trading hours following reports of additional airstrikes on Iran. At the time of writing, BTC is trading around $105,200, down 1.6% in the past 24 hours and still less than 6% below its all-time high.

The broader crypto market remains under pressure. The CoinDesk 20 Index, which excludes memecoins, stablecoins, and exchange tokens, dropped 4.4% over the same period. Major altcoins like Ethereum (ETH), Avalanche (AVAX), and Toncoin (TON) led the losses, each falling between 6% and 8%.

Crypto-related equities also faced selling pressure. Bitcoin miners Marathon Digital (MARA) and Riot Platforms (RIOT) fell 5% and 4%, respectively. One standout was stablecoin issuer Circle (CIRCL), which surged 13% following its recent IPO and amid reports that Amazon and Walmart are exploring stablecoin adoption.

In traditional markets, investor sentiment appears more measured. Gold gained 1.3%, while the S&P 500 and Nasdaq both edged down 0.4%.

Despite the brief BTC rebound, analysts urge caution. 10x Research founder Markus Thielen called the drop below $106K a failed breakout and warned of potential declines toward $100K–$101K. Ledn CIO John Glover sees a correction potentially deepening to the $88K–$93K range, presenting a possible buy opportunity before BTC targets a new high near $130K.

With geopolitical risks and market volatility intensifying, traders are expected to remain on edge through the weekend.