Bitcoin's price has once again declined, falling below the significant support level at $100,000. This occurred amidst rising geopolitical tensions.
Reasons for Bitcoin's Drop
The crypto market experienced a sharp decline as Bitcoin reached a low of $98,240, linked to U.S. military actions against Iran that sparked fears of broader conflict in the Middle East. The drop below the $100,000 level, a psychological support for investors, triggered increased panic selling.
Technical Analysis and Future Scenarios
Looking at the BTC/USD chart, Bitcoin was consolidating within a descending triangle, repeatedly testing support. When the price fell below $100,000, it confirmed a breakdown with spikes in trading volume indicative of panic. Bitcoin is currently trading around $99,525 and struggling to recover, with two potential scenarios in view: a recovery upon de-escalation or a further drop if conditions worsen.
Future Predictions for Bitcoin
If the situation in the Middle East improves, Bitcoin could rise towards $103,343, but gains may be limited. Conversely, if the conflict escalates, a significant drop to $94,000 or lower may occur. Other altcoins may also suffer, while safer assets like gold may show better performance.
The cryptocurrency market remains under pressure from uncertainty. Investors should carefully assess the current situation and approach trading with caution.
