Crypto Alarm Clock: Bitcoin Drops as Trump Blows Off Iran Attack
Donald Trump has decided not to attack Iran. Oil prices are falling, but Bitcoin is still reacting with a new decline.
Donald Trump decided not to attack Iran yesterday, but Bitcoin (BTC) has so far yielded little. Yesterday another day ended in the red, while the oil price simply plunged.
Bitcoin is trapped in a bad shape and analysts disagree on where the price is moving now.
Last Saturday, it emerged that US forces are preparing for new attacks on Iran. Yesterday at the end of the afternoon, Trump assured that there would be no attack. Still, according to U.S. officials, it's more a matter of when than if.
Bitcoin made a small jump yesterday, but has fallen back in the evening and night. That while the oil price has simply fallen by almost 2 percent. Wall Street has benefited from this with a slight increase.
Bitcoin closed its third red week in a row yesterday and that hasn't happened since May/June. In bull markets, it's not that common anyway.
Of course, the only doubt has now arisen as to whether the last rally was the start of a new upward trend. After all, Bitcoin is losing further ground below the previous peak in May.
But the fact is that for the first time since October, a new high has been set and that is an essential part of a trend reversal. It marks the moment when buyers take control of the sellers. But there is not a single asset that goes up in a straight line.
Bitcoin is now on its way to forming a higher low and the question is when and where this will happen.
According to analyst Benjamin Cowen, the Bull Market Support Band is a logical target, ranging from $73,000 to $77,000. He thinks that this entire quarter will still be rough for the digital currency, as this is more often the case in years of the US midterm elections.
Analyst Sykodelic sees a bull flag on the daily timeframe and thinks that Bitcoin is now ripe for a rise again.
In any case, there are several technical signals that show that the sellers are becoming more and more exhausted. The upcoming midterm elections could remove the necessary uncertainty from the market that puts the bulls back at the helm.