As a seasoned researcher with years of experience in analyzing financial markets, I have witnessed my fair share of market turbulence and geopolitical tensions. The recent escalation in Middle Eastern conflicts has once again proven to be a significant factor in shaping the Bitcoin market’s trajectory.
On Tuesday, tensions significantly escalated in the Middle East when Iran launched multiple missiles towards Israel, as a response to the prior Israeli military operation in Lebanon. Financial markets plummeted due to this news, while Bitcoin momentarily dipped to $60,200 before regaining its footing.
On Tuesday, the BTC/USD exchange plummeted approximately $3,800 due to escalating tension in the Middle East. As both Israel and the U.S. vowed retaliation, it seems that the downward trend in market prices might persist.
$BTC falls out of ascending channel
On the 4-hour chart displayed, Bitcoin (BTC) had dropped from its ascending channel. The price was climbing back up until the news about the Iranian missile strike was announced. This caused a significant drop in BTC’s value, but it found support at the 200 simple moving average (SMA).
At this point, the level under consideration coincided with the anticipated end-point for the calculated move within the channel. Remarkably, the price managed to rebound from that exact spot. Presently, Bitcoin (BTC) has surpassed once again the robust support at $61,400, a level it has recently tested.
$BTC bounces from 50 SMA
During each day’s trading, you might observe that the price has rebounded from the 50 Simple Moving Average (SMA). Meanwhile, the 200 SMA is showing a slight downward trend. For Bitcoin to make the 200 SMA point upward again, it needs to stage a significant recovery.
As a crypto investor, I can’t help but notice that the recent peak of $BTC at around $66,500 in this latest uptrend seems to have been the top. The current rejection from this bull flag’s apex is quite evident. At present, the price is encountering a resistance level. If it manages to break through, the next potential resistance lies above at around $63,000.
Cause for concern on weekly chart
The current state of the weekly chart raises a few worries, as it appears an engulfing candle has formed following the rejection from the top of the bull flag. Moreover, in this timeframe, the Stochastic RSI indicators are showing signs of slowing down. If the price continues to decline, there’s a possibility that it might be another false signal on the Stochastic RSI, signaling a potential return to negative price momentum.
Although it’s not quite over yet this week, if Bitcoin can bounce back and avoid the bearish ‘enveloping candle’ pattern, it could leave a long tail on the downside. This would suggest that buyers are very strong and there might be a surge in positive momentum for Bitcoin as we move into next week.
Absolutely, the degree to which these situations unfold could be influenced, to some extent, by the response from Israel and the U.S. following Iran’s missile attack on Tuesday. These are indeed very unpredictable circumstances we find ourselves in.
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2024-10-02 11:18