Bitcoin pushed back above $67,000 even as geopolitical tensions between the United States and Iran rattled global markets and pressured risk assets.
The rebound has surprised traders who expected a deeper drawdown under heightened macro uncertainty.
The asset dropped to as low as $60,030 in the early hours of the 28th of February after tensions escalated and fear spread across financial markets.
Yet, instead of extending its losses, Bitcoin [BTC] stabilized and advanced toward $68,000, recovering a significant portion of its decline within hours.
Such resilience appears counterintuitive. Historically, geopolitical escalations have triggered sustained risk-off reactions, often leading to prolonged weakness in speculative assets.
Bitcoin’s swift rebound therefore raises a critical question: does this strength reflect genuine accumulation, or is it a temporary rally within a broader corrective phase?
A familiar pattern from 2022?
Market analyst Benjamin Cowen has urged caution. According to his recent assessment, the current price structure resembles Bitcoin’s behavior during the 2022 Russia–Ukraine conflict.
In 2022, Bitcoin initially sold off as geopolitical tensions intensified. It then staged a sharp rebound that many interpreted as the start of a recovery.
However, that rebound formed a lower high before the market resumed its downtrend.
The subsequent decline proved severe. Bitcoin fell approximately 67%, sliding from around $48,189 to a cycle low near $15,476.
Source: TradingView
Cowen argues that the present setup may be tracing a similar fractal.
If the pattern holds, Bitcoin could experience a relief rally into the $70,000–$84,000 range before forming another lower high and extending its broader correction.
Cowen noted,
“Bear markets tend to take a while to play out.”
He added that even if March delivers upward momentum, the move may resemble the 2022 lower-high structure rather than confirm a sustained bull cycle.
Cowen has maintained a cautious long-term stance on Bitcoin for months, and this latest analysis reinforces his view that the market may not have completed its corrective phase.
Trading below realized price shifts the risk balance
Beyond technical structure, on-chain data adds another layer of concern.
At the time of analysis, Bitcoin traded below this adjusted realized price, estimated near $72,700. Historically, this level has acted as a structural support zone during expansion phases.
In both June and September 2023, price found stability around similar cost-basis levels before advancing.
Source: CryptoQuant
However, when Bitcoin last broke below this threshold in May 2022, the market endured sustained weakness until March 2023 before regaining stability.
Trading below the realized price often indicates that a large portion of active holders sit at an unrealized loss.
That condition can dampen demand, reduce conviction, and increase the likelihood of supply entering the market during rebounds.
If historical behavior repeats, Bitcoin could face an extended period of consolidation or gradual decline before establishing a durable recovery.
Liquidation clusters heighten volatility risk
Derivatives positioning further complicates the outlook. Liquidation data suggests the market holds significant leveraged exposure on both sides, increasing the probability of sharp, forced moves.
On the upside, $68,596 represents a high-interest zone where substantial 50x and 100x short positions are concentrated.
A decisive breakout above this level could trigger cascading short liquidations and amplify upward momentum.
On the downside, $65,656 carries similar leverage concentration among long positions. A breakdown below this level could force liquidations and accelerate selling pressure.
Source: CoinGlass
With leverage elevated and geopolitical risk unresolved, Bitcoin sits in a structurally sensitive position. A decisive move in either direction could trigger a volatility cascade.
For now, the rally above $67,000 reflects resilience.
Whether it marks genuine strength or a classic bull trap will likely depend on whether Bitcoin can reclaim its realized price and avoid forming another lower high in the weeks ahead.
Final Summary
- Bitcoin’s recovery comes despite rising geopolitical tensions between the United States and Iran.
- The asset now trades below its adjusted cost basis, a development that historically signals structural weakness.