Will Bitcoin Crash To 'Goblin Town' Or Is This Just A Geopolitical Overreaction?

Bitcoin BTC/USD slipped amid heightened geopolitical tensions following Israel’s attack on Iran. Traders questioned whether this signals a full-on crash or a temporary reaction.

What Happened: In an X post on June 13, crypto trader Jackis jokingly called Bitcoin's drop a trip to "Goblin Town"—or if markets are overreacting to fear-inducing headlines. Jackis noted that while the situation is alarming, similar Middle East conflicts have triggered emotional but short-lived market dips in the past. He said this may be another instance of fear-driven selling rather than a genuine breakdown of fundamentals.

Jackis emphasized that Bitcoin remains in a macro bullish structure, consolidating inside a vertical ascending channel for over 200 days. This consolidation is seen as a re-accumulation phase that typically precedes major breakouts.

• The pullback from May 22 to June 5 ended with a bullish daily structure break and if BTC holds the $100,400 low, the move is likely just a retest.
• A massive $1.14 billion liquidation event, the largest since February, may have flushed out weak hands, potentially marking a local bottom, as it did earlier this year.
• New liquidity zones have now formed around $111,000.

He said the drop is more about fear than fundamentals, highlighting Bitcoin's rising demand and solid on-chain metrics.

Also Read: Ethereum ETFs Outpace Bitcoin ETFs With $240M Inflows On June 11

What's Next: Jackis advised traders to watch the weekly close for confirmation. If BTC maintains its recent low, an upside continuation is expected. However, if it breaks lower, the next strong support lies at $93,000—though the macrostructure remains intact even in that scenario.

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Crypto trader Xremlin offered a different take, arguing that war has historically been bullish for Bitcoin:

• In April 2024, following Iran’s attack on Israel, BTC rose 18% in two weeks and 28% over 1.5 months.

• In October 2024, Bitcoin surged 10% in the first week after renewed conflict and 62% over the following two months after Israel struck back.

Now, in June 2025, Bitcoin has dropped 2.5% in response to similar news. Xremlin remains curious: Will the historical pattern repeat?

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