Could Escalating Israel-Iran Tensions Push Bitcoin Down to $57,000?
Analyst Justin Bennett has predicted that Bitcoin could plunge to around $57,000, largely driven by escalating tensions between Israel and Iran.
Following Iran’s missile attacks, Bitcoin’s price dipped to $60,000, but Bennett believes that the current market dynamics are bearish. He noted that the cryptocurrency must reclaim the $62,000 mark for a bullish turnaround, otherwise, further declines below $60,000 are feasible.
The conflict in the Middle East has heightened selling pressure on Bitcoin and the broader crypto market. Although Bitcoin briefly rallied above $61,000, Bennett advises caution, citing the inability to maintain levels around $64,700, which has opened opportunities for sellers. He emphasized that while $57,000 seems plausible, a drop to $51,000 is unlikely at this point.
With reports of Israel preparing for military action against Iran, fears of an intensified conflict could further impact the market, leading to increased sell-offs. This uncertainty has already dampened expectations for an October rally in cryptocurrencies.
READ MORE: Bitcoin ETFs Face Major Withdrawals Amid Middle East Tensions
Despite these challenges, Bennett remains optimistic about Bitcoin’s long-term prospects. Factors such as potential interest rate cuts by the U.S. Federal Reserve and China’s liquidity injections could positively influence the market. Additionally, the upcoming distribution of $6 billion in repayments by FTX could inject further capital into Bitcoin. Historically, the period following U.S. presidential elections has been favorable for Bitcoin, hinting at the possibility of new highs post-election, regardless of the outcome.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
