Bitcoin Price Drops 2.8% Amid Israel-Iran Tensions
The drop in bitcoin price has sparked concerns among traders, but analysts remain optimistic about its potential to rebound, given its historical performance during times of uncertainty. As the situation between Israel and Iran continues to unfold, the cryptocurrency market will likely remain volatile, with investors keeping a close eye on the bitcoin price and other major cryptocurrencies.
Bitcoin's price plummeted to $103,053 after Israel launched airstrikes on Iran, sparking a 2.8% drop from its previous value of $106,042, with approximately $427.84 million in long positions liquidated over the past 24 hours.
The sudden downturn caught traders off guard, despite gold and oil prices rising, as crypto analysts believe this trend could quickly reverse, citing historical data. Bitcoin entrepreneur Anthony Pompliano noted that Bitcoin often outperforms other assets in times of uncertainty. Israeli Prime Minister Benjamin Netanyahu stated that the military's strikes targeted Iran's nuclear program, escalating tensions between Israel and Iran and triggering a risk-off sentiment in the cryptocurrency markets.
Bitcoin, Ethereum, and Ripple prices have dipped due to the escalating tensions, with Bitcoin (BTC) falling 4% over the last two days, edging below $104,000. Ethereum (ETH) has extended its losses for the third consecutive day, signaling waning bullish momentum. Ripple (XRP) has closed below its 50-day EMA support at $2.26, increasing the chances of a deeper correction. Jan3's Samson Mow directed GameStop CEO Ryan Cohen to "buy" Bitcoin, saying "this is where you buy it when it feels scary."
If BTC closes below its 50-day EMA at $102,447, it could extend the decline to retest its psychological important level of $100,000. ETH could extend its correction and close below its 50-day EMA at $2,410, leading to a decline to retest its next support level at $2,000. XRP could extend its decline to retest its next daily support level at $1.96 if it continues to trade below its 50-day EMA.