Bitcoin risks falling below 60,000
Iran launched nearly 200 ballistic missiles at Israel on October 1. According to foreign media reports, the Israeli authorities planned to attack Iran's oil and gas wells and even nuclear facilities in retaliation.
As tensions in the Middle East intensify, the market's demand for safe havens in risky assets increases. The U.S. dollar, oil prices, and gold all rise, while high-risk assets such as U.S. stocks and Bitcoin are under greater selling pressure and face violent fluctuations.
According to the latest data from the data provider website (CoinGecko), the price of Bitcoin ($BTC) was close to the key support of $60,000 last night, recording a minimum of $60,400. It has fallen 2.9% in the past week, making investors worried Will there be a bigger drop?
Image Source: CoinGecko Bitcoin Price Chart
If USD 60,000 falls, the subsequent trend will be more pessimistic.
Analysts warned that the rising situation in the Middle East has caused global investors to consider choosing safe-haven assets. Although Bitcoin seems to have only fallen 2% in the past 2 days, according to the latest data from TradingView, the total market value of cryptocurrency has dropped in just two days. It fell 7.2%, indicating that the decline may not be over yet.
Roman, a well-known cryptocurrency trader, pointed out on the social platform To the range of $55,000 to $57,000.”
Other market experts have expressed similar sentiments, believing that Bitcoin may continue to fall in the short term. Cryptocurrency trader Toni Ghinea predicts that once the price of Bitcoin falls below $60,000, it may trigger a "bull market trap." At that time, a reversal of market sentiment may allow Bitcoin to bottom out all the way to $54,000.
Analysts bullish on long-term prices if war breaks out in Middle East
Asset trading company QCP Capital emphasized in a report that Bitcoin currently finds short-term support at the key point of $60,000, but if tensions in the Middle East further escalate, Bitcoin prices may fall to $55,000 or even lower.
Changing the topic, QCP Capital believes that this decline in Bitcoin is only a "temporary" situation. This decline has not changed the long-term trend of Bitcoin. In the long term, this round of cryptocurrency market still has the potential to rebound.
Well-known cryptocurrency trader and analyst Michaël van de Poppe also predicted that the price of Bitcoin may be close to a stage low.
He pointed out that order book liquidity decreased as the price fell, which may signal that the market is about to bottom out: "I think we are very close to the low, maybe Bitcoin will fall below $60,000 again, but it is very likely It’s a short-term phenomenon, and it will reverse later.”
Michaël van de Poppe believes that the market trend is still in line with his expectations. Although the current decline is relatively large, he is still optimistic about the chances of a subsequent rebound.
It is important for investors to pay close attention to global political situations and market reactions. Although Bitcoin fell below $60,000 in the short term, whether this will evolve into a larger market crash still depends on the development of the global situation in the next few weeks.
Analysts believe that if the situation in the Middle East does not deteriorate further and external factors stabilize, Bitcoin is expected to resume its upward trend and return to a more stable price range.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
