Amid major strikes by Israel across Iran, the Bitcoin price fell almost $6,000 through Thursday and into Friday. A comprehensive bounce is now underway. Can this recovery continue?
Israel/Iran conflict develops
When looking at the potential for a big recovery for Bitcoin it must be borne in mind that the situation in the Israel/Iran conflict is extremely uncertain. The ‘preemptive’ attack by Israel on Iran is said to have inflicted much damage on Iran’s nuclear capabilities, and a “harsh response” has been promised by Tehran.
A continuation of this conflict could have further repercussions for global markets. The S&P 500 Futures is down around -1% so far, and with the US stock market opening very shortly it is to be wondered just how far the major indices might fall.
$BTC correction tests strong support
Source: TradingView
The 4-hour chart for $BTC shows the extent of the correction, but also how a long wick down touched not only the horizontal support above $202,000, but in addition retested the descending trendline that comes from the all-time high.
At the bottom of the chart, the Stochastic RSI looks ready to turn positive once again, while the Relative Strength Index has just had its indicator bounce from the oversold level.
Bulls set on regaining $107,000 as support
Source: TradingView
The daily chart for $BTC shows that the price is continuing to recover and that the candle wick to the downside is getting longer as the price climbs. Now above $105,000, the route back to $107,000, which has now become resistance, is not too far away. Regaining this level would be a triumph for the bulls and could augur a return to the heights of $110,000 and above.
Weekly candle close above $105,000 would be a win for the bulls
Source: TradingView
The weekly chart reveals how the current candle is being pulled to and fro by the bulls and bears, with the prize at the end of the week a closure either above or below the $105,000 horizontal support level. As things stand, the bulls may be favourites to win, given that all the short-term Stochastic RSI momentum indicators have reset to the bottom. However, if the Israel/Iran conflict should worsen, all bets could be off. These next three days will be critical.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
