Value of Bitcoin alongside other cryptocurrencies continued to rise until America’s president Donald Trump eased the air as regards the ongoing clash between America and Iran. As tension in Iran dropped, the value of several cryptocurrencies has continued to fall.
Bitcoin dropped below $8,000 overnight after the situation between the US and Iran showed signs of resolving itself. This has got crypto analysts talking as they predict that Bitcoin value would continue to drop.
Currently, bitcoin trades below 5% at its current price of $7,930 a contrast from its high $8,400 where it rose to during when the tension was building up. This price, which subsequently became a key support level, was decisively broken below yesterday when bulls ramped up their selling pressure
US, Iran Brawl
The world is currently on the brink of World War 3 after Iran has come at loggerheads with the US following the assassination of top Iranian commander Qaseem Soleimani and Tehran hit bases housing American troops in Iraq with ballistic missiles.
Iran, in retaliation, launched more than a dozen ballistic missiles at the Ain al-Assad airbase in Iraq’s Anbar province and a military facility in Erbil on Wednesday and warned the US against further attacks.
Iranian President Hassan Rouhani warned the United States it risked a “dangerous response” if the White House tried any further interventions in the region.
These activities had a direct impact on the crypto market as several cryptocurrency prices skyrocketed.
Impact of the US, Iran brawl on the cryptomarket
The US, Iran brawl increased selling pressure after the world learned that the US does not appear to have plans to retaliate against Iran for their recent missile strike on an Iraqi military base.
Crypto analyst Josh Rager noted that he believes the ongoing pullback could go deeper, and how it responds to the support around its current price will offer insight into just how far the sell-off could extend.
He concluded that if Bitcoin fails to hold above the support it has found around its current price, it could spark a near-term downtrend that forces it to cut into a significant amount of its recent gains.