Countdown to Iran's Revenge! Bitcoin Price Volatility Intensifies, Market Outlook Uncertain
Background
On June 23, U.S. President Trump announced that the U.S. military conducted airstrikes on three important nuclear facilities in Iran, which raised market concerns about further escalation of tensions in the Middle East. Kazari, a member of the Iranian Parliament's National Security Committee, stated that the Iranian Parliament has concluded that the Strait of Hormuz should be closed, but the final decision rests with Iran's Supreme National Security Council. The Strait of Hormuz is a key passage for global oil transportation, with approximately 20% of the world's oil trade passing through it.
Bitcoin Price Volatility
As a result, Bitcoin prices experienced intense fluctuations. On June 23, Bitcoin briefly fell below the $100,000 mark, hitting a low of around $98,500. This price drop was due to a sharp rise in market panic, leading investors to sell off risk assets, including Bitcoin. However, Bitcoin prices later rebounded, breaking through the $100,000 mark again.
Market Analysis
Short-term Downward Risk
Technical Analysis: After Bitcoin prices fell below $100,000, a classic bearish head-and-shoulders pattern formed technically, which typically signals that bears will take control. The short-term downward target is clear, with initial support at $110 and further support at $93.
Market Sentiment: Market panic is the main reason for this price decline. The U.S. airstrikes on Iran's nuclear facilities triggered concerns about global oil supply disruptions, leading to investor sell-offs of risk assets.
Hope for Rebound
Technical Support: If Bitcoin can break through and stabilize above the 20-day moving average ($147), it would indicate strong bottom buying, giving prices a chance to test the 50-day moving average ($159).
Market Expectations: Although market sentiment is pessimistic, some investors believe that if a ceasefire agreement is reached between Iran and Israel, market panic will quickly ease, and Bitcoin prices are expected to rebound.
Investment Advice
Risk Management
Stay Informed: Keep a close eye on the subsequent developments in the Middle East, especially Iran's actions regarding the Strait of Hormuz and the U.S.'s further reactions.
Investment Opportunities