Bitcoin plummets amid rising Middle East political tensions
On April 13, Bitcoin’s price fell sharply by 8.4% after Iran attacked Israel, which heightened political unrest in the Middle East. From approximately $67,000, Bitcoin’s value dipped to $61,625. This meant that more than $130 million disappeared from the market in just a few minutes once the attack was announced.
Iran-Israel conflict deepens
The downturn is hitting other cryptocurrencies as well. Currently, Ether has decreased by 9.81% to $2,927, and Solana has dropped 15.96% to $129. As per CoinMarketCap’s data, the total global crypto market value has diminished 8.19% to $2.23 trillion.
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BREAKING‼️ Bitcoin plunges $6,000 in minutes after reports of Iran launching up to 100 drones towards Israel in retaliation for their embassy being bombed by Israel earlier this month. pic.twitter.com/nBi9lWhiCw
— Bitcoin Archive (@BTC_Archive) April 13, 2024
As reported by Bloomberg, Iran sent drones toward Israel on Saturday, April 13. This act was a response to an earlier attack by Israel. In that attack, a diplomatic building in Damascus, Syria, was targeted, causing the death of seven Iranians, including two generals. Besides the air attacks, Iran has allegedly taken hold of a cargo vessel owned by a wealthy Israeli individual.
On April 12, United States President Joe Biden conveyed that a prompt response from Iran was anticipated. He emphasized the steadfast commitment of the U.S. towards defending Israel, expressing that unwavering support would be provided with the assurance that any attempts from Iran would be unsuccessful.
The U.S. has been keen to reduce tensions between Iran and Israel. This effort has become more crucial since Hamas’ terrorist attacks on October 7, 2023, which worsened the ongoing conflict between Israel and Hamas.
U.S. authorities have asked Israel to avoid heightening tensions in its reaction to Iran, according to a government insider. They also expressed annoyance that Israel didn’t share earlier details about its airstrike in Damascus. Sources said that the U.S. was only informed when Israeli planes were already heading towards Syria.
An official revealed that the United States was not informed of Israel’s intent to execute the airstrike beforehand. According to this representative, the Israeli authorities reached out to a U.S. official with the information that a strike was underway in Syria just moments before the event took place.
The message failed to include specifics on both the target and the location of the strike. Moreover, the action had already been initiated by the time this information could be relayed through various channels in the U.S. government.
Bitcoin price forecast
Before the halving, Bitcoin’s price might continue to drop. It’s still below a crucial support level, as it slipped under it three days ago. Currently, it’s stuck in the lower end of the market range between $61,970 and $73,122. This is where selling pressure was the highest and buying pressure reached its peak. It seems more likely that the price will continue to fall.
The Relative Strength Index is less than the average level of ’50’, and it seems to be moving downwards. This, along with the negative status of both the Awesome Oscillator and the Moving Average Convergence Divergence strengthens the prediction of a decrease in Bitcoin’s value.
Bitcoin’s price might fall to around $61,970 again. If the situation worsens, the price could even drop to the critical $60,000 mark before bouncing back.
However, if Bitcoin buyers flex their muscles, the price could go back on an upward trendline, signaled by a rise above the $67,546 mark, as per the 50% Fibonacci indicator. This might attract more buyers, driving the price above $69,000. In an extreme uptrend scenario, Bitcoin could even surpass its all-time high of $73,777 before aiming for additional growth.
Ethereum’s price outlook
The price of Ethereum is currently trapped within a declining pattern, which usually suggests a positive turn is coming. Its future performance, though, is largely dependent on Bitcoin – Ethereum may follow Bitcoin’s lead. If Bitcoin grows stronger, we could see a rise in Ethereum, too. Specifically, if Ethereum surges above the $3,750 mark, it could be a good time to buy.
With the general market still not doing well, Ethereum’s value could keep dropping below the 100-day Simple Moving Average of $3,023. If it closes below $2,750, that would prove optimistic predictions wrong.
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Joshua Downes
Joshua Downes is an experienced journalist and editor specialising in finance, trading, cryptocurrency and online betting. Over the last eight years, he has written for numerous publications and media outlets, both print and online. These include Trading-Education, Wetten, GamblingGuy, BitReviews, Industry Slice, and Gulf Business. With a BA in journalism and an MA in English, Joshua aims to provide informative and highly readable articles, making even the most complex of financial concepts easily understandable for the average reader. Joshua is currently pursuing professional qualifications in finance and also has extensive knowledge of the gambling industry, having spent four years working in operations for Gala Coral.
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