Everyone agrees that the book of Revelation predicts the fall of Babylon; what they do not agree upon is the identity of Babylon. Some say it is Rome, Roman Catholicism, a modern day world-wide church, or apostate Christianity as a whole. One thing is certain, the interpretation of Revelation and thus much of the Bible, hinges upon who Babylon is or was. In Revelation the coming of Christ, the New Creation, judgment and resurrection are associated with the fall of Babylon. To mistakenly identify Babylon is to incorrectly interpret these issues. Whatever one makes Babylon to be these issues are inextricably linked with her fall! Can we identify Babylon? Yes indeed!
Revelation 16:6; 17:1-6; 18:20, 24 tell us that Babylon was drunk with the blood of the prophets. This is a critical point! The term "the prophets" appears 88 times in the New Testament. The overwhelmingly normal usage of the term refers to Old Testament prophets.
Now the city of Rome, the Roman Catholic church, apostate Christianity, nor any modern world-wide church ever persecuted Old Testament prophets! But Babylon of Revelation did, therefore none of these can be identified as Babylon; it is just that simple! What city persecuted the Old Testament prophets and filled the Cup of her Sin by so doing? It was Jerusalem.
Comparing Matthew 23 with Revelation plainly reveals this. In Matthew 23:31 Jesus said it was Jerusalem that had killed the prophets; in Revelation it is Babylon. In Matthew 23:32 Jesus said the Jews were about to fill the cup of their sin by continuing to persecute those sent to her; in Revelation 17 Babylon has filled her cup by persecuting not only the prophets of old but the followers of Jesus as well, 17:6. In Matthew 23:35 Jesus said Jerusalem was guilty of "all the blood shed on the earth," 23:35; in Revelation 18:24 Babylon bears the guilt for "all the blood shed on the earth." In Matthew 23:36 Jesus said judgment on Jerusalem for killing the prophets would come in his generation; in Revelation Jesus said "Behold, I come quickly" 22:6, 10, 12, 20. Such parallels are not accidental!
Finally, the Great City Babylon is "spiritually called Sodom," Rev. 11:8; and the only city in the Bible--other than historical Sodom--that is ever called Sodom is Jerusalem, Isaiah 1:10; Jer. 23:14, Ezek. 16:44f. Babylon is also "where the Lord was crucified" Rev. 11:8. Jesus was not crucified in Rome, or by the Catholic church; Jesus was crucified in Jerusalem!
Source:-http://www.preteristarchive.com/Preterism/preston-don_p_03.html