$BTC A small downward momentum does not matter .......
There’s been a lot of talk about Bitcoin's recent dip being linked to escalating tensions in the Middle East, particularly Iran’s missile strikes on Israel. While geopolitical events like these can shake markets, $BTC ’s price was already on a downward trend before this situation unfolded. Let’s explore why Bitcoin’s decline was a natural progression, independent of political headlines.
1. Technical Patterns Were Already Shaping the Fall
Bitcoin’s recent price action shows a clear technical pattern that predates the geopolitical tensions. For weeks, $BTC
has been moving within a descending channel. As seen in the provided chart, Bitcoin consistently failed to break past the upper resistance line. The rejection of the resistance level, combined with lower highs, painted a bearish picture well before the news of the attack.
The moving averages reinforce this technical breakdown:
MA(7) at $64,042 suggests short-term bearish momentum.
MA(25) at $61,482 indicates limited support around the current price level, hinting at indecisive market sentiment but leaning towards further downside.
Without the influence of the geopolitical news, BTC’s price was already primed to test the lower boundary of this channel, potentially targeting the $50,000 support zone.
2. Geopolitical Events Have Short-Term Impact
It's a common misconception that events like military conflicts cause long-term market trends. While such news can create temporary volatility, Bitcoin typically stabilizes as the market digests the broader picture. Historically, Bitcoin has been viewed as a hedge against uncertainty, often bouncing back after initial sell-offs.
In this instance, while Iran’s attack might have briefly added to market anxiety, the truth is Bitcoin’s technicals had already signaled a downward trend. The attack may have accelerated the decline, but it wasn’t the catalyst. BTC’s trajectory was set long before, and the charts tell the story of a corrective move that has been unfolding for days.
3. Challenging the "Uptober" Theory
Historically, October has been a favorable month for Bitcoin, a trend dubbed "Uptober" by the crypto community. However, this year’s price movement has broken from tradition. Instead of steady gains, BTC entered October with bearish momentum, as critical resistance levels went unchallenged. The assumption that BTC would rally in October no matter the circumstances has been proven wrong this time around. The market’s cyclical nature is playing out, and we are seeing a continuation of a broader downtrend.
What Comes Next: A Potential $50,000 Floor
Given the current technical setup, BTC might test the lower levels of its descending channel. If it approaches the $50,000 mark, we could see this psychological support level act as a potential floor. Historically, buyers tend to step in at these major levels, providing opportunities for consolidation and recovery. However, an immediate bounce isn’t guaranteed. BTC could spend some time trading within this range before making its next significant move.
In Summary
While it’s easy to blame Iran’s missile attacks for Bitcoin’s recent decline, the reality is that BTC’s drop was a result of established technical patterns. The charts have been signaling this corrective move for a while, with clear resistance rejections and lower highs forming a predictable downtrend. Although the geopolitical news may have heightened short-term selling pressure, it wasn’t the driving force behind the drop. In the end, Bitcoin’s technicals offer more insight into its price movements than any breaking news.
#BTC☀ #BTCReboundsAfterFOMC #TCPredictedNewATH #BinanceLaunchpoolHMSTR #Write2Earn!