As a seasoned researcher with years of market analysis under my belt, I can confidently say that the Bitcoin market is currently navigating through some choppy waters. My personal journey has taken me through numerous financial crises and geopolitical tensions, and I must admit, the current situation in the Middle East is giving me a sense of déjà vu.
The value of Bitcoin is experiencing continuous fluctuations, given the escalation of tension in the Middle East yet again. As Israel is yet to respond following Iran’s missile attack on Israeli soil on Tuesday, we might encounter even stormier markets for Bitcoin.
Uncertainties beset Bitcoin
Ever since tensions increased in the Middle East and Israel invaded Lebanon, the price of Bitcoin has plummeted by almost 10%. As more conflicts may erupt, there’s concern about how much worse it could get for the leading digital currency.
Beyond geopolitics, several factors are impacting markets. These include ongoing uncertainties about the U.S. economy, particularly in relation to the upcoming presidential election. Additionally, there’s the pending strike by US longshore workers, which could severely disrupt operations at the country’s eastern ports. This disruption might cost up to $5 billion per day.
In essence, it can be contended that Bitcoin was designed as a solution to problems like these. However, in today’s context, despite being the leading cryptocurrency, it often struggles to maintain its pace due to unexpected geopolitical events and unfavorable economic updates.
Has Bitcoin found a local bottom?
The cost of Bitcoin has been in a recent period of correction starting from Sunday, and it remains unclear how low the price could fall further. However, a closer look at the short-term chart suggests that Bitcoin might have hit a local bottom near the significant $60,000 horizontal support level.
If the price drops past the current point, potential support could be found at $58,000 (based on the 0.618 Fibonacci level), with additional support possible at $55,500 (the 0.786 Fibonacci level). Even if the price decreases to either of these points, it would still create a lower price point compared to previous highs, which aligns with the pattern that saw a higher high of $66,500 reached last Friday.
Weekly chart favours a bounce
Looking ahead at the weekly chart, it seems that the Bitcoin price may have hit a temporary low at around $60,000. This level aligns with the 0.382 Fibonacci retracement for the recent drop, which could indicate potential support. If the price starts to increase from here, this would be a strong bullish sign.
Furthermore, the current price is holding steady near the significant support level of $61,000, where it has frequently touched before, indicating that this level offers robust support.
It appears, based on technical analysis, that the situation seems to favor a rebound. However, an intensification of the Middle Eastern conflict might complicate this potential improvement. If Israel responds to Iran’s missile attack, it could serve as the complication in question.
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2024-10-03 11:34