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Technical Analysis

Bitcoin Rocked by Geopolitical Tensions, Technicals Still Bullish

Bitcoin Falls Below $60,000

Following reports of an Israeli missile strike in Iran, global financial markets reacted strongly. Bitcoin fell by 5.5% in a matter of hours, dropping below $60,000. Ethereum, the second-largest cryptocurrency, also declined, falling below $3,000 to $2,895.

As geopolitical risks increased, investors moved their funds into traditional safe-haven assets, such as gold and government bonds, rather than holding riskier investments like cryptocurrencies.

BTC chart on the daily with RSI

Bitcoin is currently trading at $64,760 at 11;51 CET Friday after a strong uptrend over the past few months. The price has pulled back slightly because of the geopolitical volatility after reaching an all-time high.

Key levels to watch:

  • Resistance around the all-time high of $64,760. A decisive break above this level could signal further upside.
  • Support at the previous high around $59,635. Holding above this level would be bullish.
  • The 21-day moving average (currently $53,002) has been acting as dynamic support. Remaining above it keeps the uptrend intact.
  • The rising 100-day moving average (currently $47,493) represents a key long-term support level.

Trade opportunities:

  • Long positions could be considered on a breakout above $64,760 resistance, with a stop below the $59,635 support.
  • Alternatively, long entries may be found on a retest and bounce off the $59,635 level or rising 21-day MA, with stops below.
  • Short-term traders could look to play the range between $59,635 and $64,760.