The financial market took a huge hit over the weekend as the conflict between Iran and Israel escalated, causing worries about a potential long-lasting war that might impact the global economy. 

During this time, the crypto market is tumbling down, with more than $1 Billion of liquidation in the futures market. 

This volatility has led to losses across the market, which was led by Bitcoin, which is recovering but might have the potential to go down even more. 

Global Conflict Worries Investors 

The conflict escalated after Iran’s retaliation strike around April 13th, 2024 which led to investors panicking about the potential threat it might bring to the global economy. 

Iran’s attack was a retaliation of Israel’s attack on April 1st, 2024 on Iran’s Consulate in Damascus, Syria. 

Iran’s Attack News / Source: Twitter

Seeing how big the conflict is, investors are now panicking by selling their assets in the financial market, including crypto. 

The panic came from the potential of the war escalating even more, involving more countries like the US, North Korea, or Russia, which might lead to World War Three. 

While that still seems like a huge stretch, the possibility of it happening is still big. However, the worries currently sit around the global economy, as the conflict might impact some primary goods like energy.

With conflict happening in the Middle East, especially Iran, oil prices usually go up. If this happens at the same time with the current economic condition that has not fully recovered from COVID-19, then there is potential for purchasing power to decrease globally, which might lead to economic crises all over the world.

To mitigate the risk of not being prepared, most investors are selling so that they have enough cash to hold on to if somehow the economy tanks. 

Bitcoin has been one of the many assets that was impacted by the current geopolitical condition, with its price going down around 13% over the weekend. 

BTC is Still in the Consolidation Phase 

Bitcoin’s price seems to have recovered this morning with its price going back up again into the $65,000 range. 

However, the price might not fully recover to its prior level yet as the conflict’s worries are still looming over investors.

This is because there are speculations of Israel’s firing back, where this might lead to more and more global economic impact.  

Bitcoin’s Price / Source: Tradingview

Looking at Bitcoin’s price, there are potential corrections with Bitcoin’s current strong support standing at around the $60,400 mark. 

This support marks a huge consolidation zone of around $73,900 to around $60,400 level which has been Bitcoin’s consolidation zone since March 2024. 

This means that the current correction might potentially be a continuation of this consolidation phase, which is why the current target stands around the $60,400 mark. 

The consolidation phase might continue until the Bitcoin Halving happens, which is predicted to be around April 20th, 2024. 

Looking at the daily candlestick, there are still no signs of a bullish candlestick pattern that can be considered key for potential price recovery. 

The RSI Indicator also shows that Bitcoin is currently in a negative zone, which means that traders and investors should expect more correction as the selling volume is still bigger than the buying volume. 

Overall, expect volatility going into the week as two events need to be looked at, which are the global conflict as well as the Bitcoin Halving.

Read Also:

Bitrue Official Website:

Website: https://www.bitrue.com/

Sign Up: https://www.bitrue.com/user/register

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.