US and Iran Tensions Fade – No More Bitcoin Trouble?January 11, 2020
As tensions between the U.S. and Iran start to fade, does it mean that Bitcoin will face no trouble?
Of course, the recent tensions between the two countries not only took the global political stage, but also to the traditional safe haven assets. The gold price rise as tensions began earlier this month and then, fall as these tensions start to fade.
So far this year, the Bitcoin price is up to 15%, which added 5% to the value during the last 12-hour trading period. The rise in the Bitcoin price came shortly after the missile attack of Ira on U.S.-led forces in Iraq.
Yesterday, the price of Bitcoin has fallen back after U.S. President Donald Trump commented to the situation in Iran and suggested that, “Iran appears to be standing down.”
Rockets have been fired at the military facilities and U.S. embassy in Baghdad. The BTC price dropped to under $8,000 each after the White House speech of Trump.
So, What’s the Current Price of Bitcoin?
Now, Bitcoin is trading down under 5% with its current price of $7,930. This suggests a remarkable decline from the recent peak of $8,400.
The said rally began early this January after the killing of Iranian General Soleimani. It slowly gained momentum until Tuesday as the bulled propelled the cryptocurrency past resistance with $8,000. This price became the key support level when the bulls increased the selling pressure.
Despite that kind of selling pressure, it seems like the U.S. still have no plans in retaliating against Iran.
Due to the retrace from recent highs of BTC, there goes an extreme bearesh pattern formed on the long-term candle. Not to mention, the three-day candle gone close to posting the bearish reversal pattern.
According to Crypto Analyst Big Chonis, “$BTC – 3-day candle closes later today, looking like a shorter than a hammer, but close above EMA26 support would be notable…still a way to go for a bull cross test, on his higher time frame.”
What Doe This Mean to Bitcoin?
Both cryptocurrency and Bitcoin watchers continue to have a speculation whether the BTC price can perform in similar way to the traditional safe haven assets.
According to Quantum Economics Founder Mati Greenspan, “The resemblance between digital gold and the physical stuff is uncanny.”
He also noted along with the latest rise of BTC that, “They’ve basically been moving in a very similar pattern throughout most of last year.”
Meanwhile, another crypto analyst, Josh Rager recently noted that, “ $BTC can certainly go deeper than originally expected. Target hit, but if this bounce is weak will look to short and re-enter at a lower target. The only reason to be bullish short-term before was geographical news/rumors that has since changed. Shorting $84xx was the trade opp.”
In the case that BTC will fail to hold above support it hold from its current price, there’s a huge chance it will end up with near-term downtrend. This downtrend will then force it to cut into a great amount of the recent highs.