to leave a comment.
▲ Bitcoin (BTC), cryptocurrency decline/AI generated image
As the conflict between the U.S. and Iran reignited, the stock market plummeted, but Bitcoin (BTC) rebounded from $61,600. The ability to defend the $61,500 level has emerged as a critical turning point, determining whether there will be further collapse or a new uptrend.
Lark Davis, host of the cryptocurrency podcast The Lark Davis Show, stated in an episode on July 8 (local time) that U.S. airstrikes on Iran and Iran's retaliatory attacks have heightened market risks again. U.S. forces struck over 80 targets within Iran. Iran claimed to have attacked U.S. military bases in Bahrain, and Kuwait was also attacked.
U.S. President Donald Trump announced that the truce between the U.S. and Iran had ended. Davis pointed to the risk of the Strait of Hormuz effectively being blocked again. With three oil tankers attacked, international oil prices surged from approximately $70 to $78 in two days. He explained that energy supply instability increased due to this combined with Ukraine's attacks on Russian oil export and refining facilities.
The stock market could not escape the shock. Davis assessed that significant losses were occurring across the stock market. The Volatility Index (VIX) rose to 18.8. He said, "If risks increase further, the Volatility Index could surge even more." He analyzed that the South Korean stock market had fallen 23% from its peak on June 19, and the Nasdaq was also at risk of further correction.
Bitcoin fell to $61,600 after news of the U.S.-Iran conflict but rebounded from the descending wedge support line it had recently been tracking. Davis stated, "If Bitcoin holds above $61,500, it could form its first higher low, and we can discuss the possibility of a new uptrend." He suggested the 50-day exponential moving average as the next upward target.
Conversely, if it falls below $61,000, the short-term bullish scenario falters. Davis still assessed the current market as a bear market but noted that cryptocurrencies are holding up relatively better than the stock market. He explained that further drops in the U.S. stock market and the unfolding of the Iran situation are key variables that will determine whether Bitcoin can maintain support at $61,500.
[Article Key Summary]
-After the re-escalation of the conflict between the U.S. and Iran, the stock market plummeted, and international oil prices rose from approximately $70 to $78 in two days.
-Bitcoin fell to $61,600 and then rebounded from the descending wedge support line.
-Davis suggested the possibility of a new uptrend if $61,500 is defended, and the possibility of the bullish scenario being undermined if $61,000 collapses.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
Newsletter
Get key news delivered to your email every morning
to leave a comment.