The Bitcoin price is continually being buffeted, as tensions in the Middle East rise once again. With the Israeli response still to come, after Tuesday’s Iranian missile barrage into Israel’s territory, there could be more rough seas to come for Bitcoin.
Uncertainties beset Bitcoin
Since an upping of the ante in the Middle Eastern conflict, and the Israeli incursion into Lebanon, the Bitcoin price suffered a nearly 10% reversal. With possible further escalations to come, it is to be wondered just how much worse things can get for the alpha cryptocurrency.
It’s not just the geopolitical situation that is affecting markets. There is the ongoing uncertainty over the US economy, and how this might be influenced by the presidential election. On top of this, the strike by US longshoremen is set to cripple the country’s eastern ports, potentially leading to a cost of as much as $5 billion a day.
It might be argued that Bitcoin was created in order to combat such issues as these, but for the present times at least, the king of the cryptocurrencies continues to be knocked off of its stride by geopolitical black swans and bad economic news.
Has Bitcoin found a local bottom?
Source: TradingView
The $BTC price has been in its latest corrective phase since Sunday, and it remains to be seen how far down the price might go. That said, the short term price chart above shows that $BTC might have found a local bottom at the $60,000 major horizontal support level.
If the price were to fall through this level, the 0.618 Fibonacci is support below at $58,000, with the 0.786 Fibonacci below this at $55,500. Even if the price did come down to either of these levels, it would still technically form a higher low, and this to follow the higher high of $66,500, which was attained last Friday.
Weekly chart favours a bounce
Source: TradingView
Moving out into the weekly time frame, it can be observed that the $BTC price might indeed have found a local bottom. The 0.382 Fibonacci for this latest move has provided support at $60,000. If the price does bounce from here, this would be very bullish.
In addition, the price is currently respecting the horizontal support at $61,000, which also has several touch points, denoting it as a very strong support level.
Therefore, from a technical analysis perspective, it does look as though the odds favour a bounce. That said, a further escalation of the Middle Eastern conflict could well throw another spanner into this potential recovery. The Israeli response to Iran’s missile strike could be that spanner.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
