As global markets respond to the heightened geopolitical tensions in the Middle East, Bitcoin’s (BTC) expected bull run in October has experienced a setback. Prior to Iran’s missile strike on Israel, Bitcoin’s value was above $64,000.
In the wake of the incident, the cryptocurrency fell to $60,350 as investors reacted to the macroeconomic developments with significant sell-offs. This analysis delves into how the intensifying conflict has affected Bitcoin’s price movements, the shift in market sentiment, and what might lie ahead for BTC.
Iran’s Strike on Israel Poses Risks for Bitcoin
According to Glassnode data, the Bitcoin Fear and Greed Index was at 61 early yesterday, indicating a positive outlook among investors. This index, which spans from 0 to 100, measures market sentiment. Values near zero denote extreme fear, while figures approaching 100 indicate greed and optimism.
Before the missile strike by Iran, the index reflected strong investor confidence for Bitcoin to exceed $64,000. However, it has dropped to 39 since then, highlighting escalating fear in the market and a potential halt to Bitcoin’s bull run.
In light of this pessimistic sentiment, Bitcoin’s price has fallen below the Short-Term Holder (STH) Realized Price, which represents the average on-chain acquisition cost from the past 155 days.
When prices are above this level, it signals a bullish trend, allowing for higher price potential. Currently, Bitcoin’s STH Realized Price stands at $62,617, implying that a near-term approach to $80,000 seems unlikely.
Read more: Top 7 Platforms to Earn Bitcoin Sign-Up Bonuses in 2024
BTC Price Forecast: $60,600 Is Crucial
From an on-chain perspective, the In/Out of Money Around Price (IOMAP) analysis indicates that the price zone between $63,510 and $65,323 is particularly significant for Bitcoin. The IOMAP illustrates the number of addresses that hold a specific volume within a given price range.
Generally, the higher the volume, the more robust the support or resistance. As observed, there are 2.15 million Bitcoin addresses holding 1.27 million BTC within the aforementioned range, which is greater than the minor support level at $60,666.
This suggests that Bitcoin’s price may struggle to reach $65,000 soon. Instead, a decline to $59,813 could be more probable.
Notably, digital asset management firm 10x Research concurs that $60,600 represents minor resistance for BTC. Their latest report indicates that Bitcoin must exceed $66,000 to potentially negate the current bearish trend.
Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030
“The liquidity cycle has not yet fully developed. Bitcoin’s failure to breach the $66,000 mark corresponds with the descending resistance line, a level that may have been exceeded had the ISM Manufacturing data been more encouraging,” stated Markus Theilen, Lead Analyst at 10x Research, wrote.
Disclaimer
In accordance with the Trust Project guidelines, this price analysis article is intended for informational purposes only and should not be interpreted as financial or investment advice. BeInCrypto is dedicated to providing accurate and unbiased reporting; however, market conditions can change without notice. Always perform your own research and consult with a professional before making any financial decisions. Please be aware that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Dutch
English
French
German
Greek
Italian
Portuguese
Russian
Spanish