Analysts Eye ‘Insane Reversal’ in Markets as Bitcoin Touched $70K

Bitcoin has returned to a key psychological price level as markets bounced back amid ongoing tensions in the Middle East.

Bitcoin prices reached $70,125 in late Monday trading on Coinbase, according to TradingView.

However, it hit resistance there as it did on Feb. 25 and had pulled back slightly to trade at $68,000 at the time of writing during the Tuesday morning Asian trading session. There has been an “insane reversal in the markets,” observed crypto analyst ‘Bull Theory’ on Tuesday.

“Just 24 hours ago, we saw extreme fear and panic when US futures opened Sunday night,” they said. US stock markets and crypto markets have rebounded strongly, they observed before adding:

“Markets don’t hate bad news; they hate uncertainty. Khamenei’s death didn’t spark chaos; it removed ambiguity, and the market priced that in immediately.”

Bitcoin Bucks War Panic Trend

“Traditional ‘risk-off’ playbooks say Bitcoin should be dumping right now,” said Macro outlet Milk Road. “If BTC can maintain this divergence from risk assets during sustained geopolitical stress, the ‘digital gold’ argument finds itself a new tailwind.”

“We understand war headlines make investors nervous, but we expect stocks to be up in March,” commented Fundstrat’s Tom Lee on Monday.

“This is exactly what happened in 2022 when Russia invaded Ukraine,” said analyst ‘CrediBull Crypto’.

They added that the day of the invasion marked a local bottom after months of drawdown, “and we spent a month climbing 40% back to the upside before continuation back down.”

“People’s first inclination during events like this is to panic and sell, which would have made you sell the local bottom in both these instances.”

Meanwhile, CryptoQuant analyst ‘Moreno’ said, “the sell-side pressure from recent buyers is fading. Panic is being replaced by patience, or at least exhaustion.”

“Despite the recent geopolitical escalation involving Iran, a type of event that historically triggers reactive selling, the data shows no meaningful spike in exchange inflows from short-term holders.”

There was no panic profit-taking, no loss capitulation, no reactive behavior from this typically event-sensitive cohort,” he added.

Santiment reported that as markets have rallied, social data indicated there was a “huge surge in positive sentiment as Bitcoin’s price was threatening to fall below $65,000.”

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“Discourse is heavily invested in the Iran, Israel, and US conflict currently, so expect volatile movement based on any notable updates with the developments,” it added.

📈 As today’s markets have rallied, social data indicated there was a huge surge in positive sentiment as Bitcoin’s price was threatening to fall below $65K. Over the next 2 hours and 20 minutes, $BTC rallied +7% and reached $69.9K before running into $70K resistance for the time… pic.twitter.com/B3lWwtqABz

— Santiment (@santimentfeed) March 2, 2026

Crypto Market Outlook

Crypto market capitalization has gained 2.6% on the day to reach $2.42 trillion at the time of writing. The move was largely driven by Bitcoin, but Ether also reclaimed the $2,000 level and remains just above it at the time of writing.

Altcoin gains were minimal in comparison to the top two digital assets.