As the new week unfolds, Bitcoin faces a challenging recovery path, attempting to climb back from a steep 14.58% drop in value. The cryptocurrency’s price descent last week has left traders in a scramble to reassess positions, especially after a turbulent weekend that saw the crypto market capitalization shrink significantly.
Despite the tumult, the resilient cryptocurrency has shown signs of a rebound. The rapid price fluctuations once again underscore Bitcoin’s sensitivity to geopolitical developments. Analysts draw parallels between the current market response to tensions in the Middle East and the dramatic crypto sell-off triggered by the COVID-19 pandemic in March 2020.
The immediate market reaction to the increased hostilities between Israel and Iran has been sharp, with altcoins bearing the majority of losses. Yet, Bitcoin (BTC/USD) has managed to hold its ground above the $60,000 support level.
With Bitcoin’s next halving—a significant event that historically impacts price due to the reduction in new coin generation—just days away, market observers are bracing for continued volatility.
In the span of a week, Bitcoin has witnessed a dramatic shift, plummeting from a comfortable $72,112 on April 8 to a shaky $61,593 on April 14. These price movements have coincided with escalating geopolitical tensions, as Iran responded with drone and missile attacks following an Israeli military operation in Syria.
While the market reels from the shockwaves of geopolitical instability, the focus has seemingly diverted from Bitcoin’s upcoming halving. The event, which is merely four days away, has been overshadowed by the immediate price concerns, though it remains a critical factor for long-term valuation.
Providing insight into Bitcoin’s trajectory, John Glover, Chief Investment Officer of Ledn, has shared a technical analysis that draws from a year of Bitcoin’s historical data and projects roughly nine months into the future.
Glover outlines a possible scenario: “We continue to develop a triangle formation, and the direction we break out of—be it the lower or upper bound—will dictate our path. If we follow the blue wave count, which I favor, we might see Bitcoin reaching approximately $85k before a significant pullback, with the potential to soar past $100k. Conversely, a break toward the mid-$50k region could occur to shake out weak long positions before another climb towards the $90k mark.”
He further adds, “Should the halving not immediately propel prices upwards, we may see the market testing lower support levels. However, long-position holders should remain steadfast.”
At the time of writing, Bitcoin stands at $66,303, with a trading volume that has surged to $43 billion in the past 24 hours. As traders and investors alike navigate through the mire of current events and upcoming milestones, Bitcoin’s journey ahead promises to be as intriguing as ever.
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