Bitcoin’s price is acting a bit strangely, caught in what analysts are calling a “descending triangle” pattern. This, combined with rising tensions between Israel and Iran, makes predicting its next move tough.
A Triangle of Uncertainty
Bitcoin recently failed to break through $110,000. Now, it’s below its 21-day moving average but above its 50-day moving average. This, along with a clear resistance line, has created a descending triangle on the chart. This pattern often signals a price drop, according to technical analysis.
The triangle shows repeated price rejections near the downward-sloping trendline (starting from Bitcoin’s all-time high of $111,814). The support level, around $102,000, has held steady. The 21-day moving average is acting as resistance, while the 50-day average provides temporary support. The price is squeezed tighter and tighter within this triangle, meaning a big move is likely soon – either up or down.
Geopolitical Jitters Add to the Mix
The conflict between Israel and Iran is adding another layer of complexity. Recent news of an Israeli airstrike on Iran led to a crypto market sell-off. During times of global uncertainty, Bitcoin’s behavior is unpredictable. It could act as a safe haven asset, or investors might sell it off to raise cash.
Two Possible Scenarios
Here’s what could happen:
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Bearish Breakout:
If fear in the traditional markets continues, Bitcoin could fall below the $102,000 support, confirming the bearish descending triangle prediction.
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Bullish Breakout: If bullish sentiment returns, a break above the trendline would invalidate the bearish pattern, potentially leading to another attempt at reaching the $110,800 high.
Currently, Bitcoin is trading around $104,990. The next few days will be crucial in determining which way it breaks.
