Key Takeaways
- Bitcoin rose 7.7% above $73k for the first time in weeks, as price could trade towards key supply zones at %75k and $95k.
- The cryptocurrency initially crashed to the $63,000 level after conflict broke out in the Middle East, but has since rallied by over 11%.
- Key zones to watch for BTC are around $75k and $95k as crypto experts speculate the current rally is a bull trap.
The US-Iran war continues to have a huge impact on the financial market and the world generally, as Iran continues its retaliatory strikes targeting Middle East countries, with the likes of Saudi Arabia and Qatar affected in the last few days.
Despite the uncertainties the current war has brought to the financial markets, the likes of bitcoin and oil have outperformed traditional assets like gold and stocks, leading to market crashes as traders and investors are cautious amid current world events.
With Bitcoin rallying above $73,000 for the first time in weeks, where could the market be headed, and what could happen to gold? The price has been in a short-term downtrend from its high of $5,400, and it could trade below $5,000 in the coming days.
Why Is Bitcoin Going Up Today?
Source – Bitcoin Price Action from TradingView
The price of Bitcoin has shown bearish price action for weeks, trading to the downside following a fall from a high of $90k towards a region of $60k, as the price was speculated to crash lower towards $50k.
However, the price declined after the news of the US striking Iran. Ahead of the market open, Bitcoin responded favorably, reclaiming $73,000 after weeks.
While many traders are excited about Bitcoin’s price rebound, many analysts has speculated this could be a bull trap, making reference to Bitcoin price action of 2022 as similar price action could be playing out.
BTC could resume its bullish rally if the price reclaims $100k, indicating a strong market rebound on a higher timeframe. BTC’s response during the time of war has been impressive recently as gold on the other hand, has struggled, as the price could potentially trade towards sub $5,000 following recent market crashes for the traditional asset.
Traders and investors would be keeping a close eye on BTC to see how the price performs around key supply zones at $75,000 and $95,000, respectively, as a break above $100k could spark a fresh rally towards new all-time highs.
FAQs
What will happen to crypto if the US attacks Iran?
There have been speculations suggesting the price of BTC could fall, but they have proven wrong as the price has been rallying. Gold and Oil have seen strong price action over the last few days.
Will oil prices go up if there is a war?
Due to the Strait of Hormuz being blocked, which restricts 20% of the world’s oil supply, and the recent explosion at Saudi Arabian oil facilities, oil prices have risen.
How much BTC does Iran hold?
There are no exact figures yet, but Iran has been conducting many transactions and mining activities with Bitcoin lately, despite the recent US-Iran war.
Will the Iran War affect crypto?
The crypto market has experienced a crash in the last few hours amid the US-Iran war, as US President Donald Trump hints at a combat operation. The crypto market could see a significant crash on Monday when it opens.
Related Read
US Attack Iran – How Iran and US War Will Affect Bitcoin and Other Crypto
How Oil Supply Could Affect Crypto as Oil Eyes $100 per Barrels
