Over the last few days, there was a notable decline in the cryptocurrency market, primarily linked to escalating tensions between Iran and Israel. The apprehensions surrounding potential conflicts in the Middle East have unsettled financial markets, leading investors to search for more secure investment options.
Furthermore, the crypto market faced downward pressure due to recent unhelpful data, with inflation persisting significantly above the U.S. central bank’s 2% target for the initial quarter of the year.
Despite these challenges, Bitcoin showed resilience by rebounding 2% to reach \(65,466 in Monday’s trading session, following a dip below \)62,000 on Sunday.
Crypto Tracker
- Bitcoin: 12,922 (7.23%)
- Ethereum: 271,014 (5.25%)
- Solana: 5,533,799 (2.84%)
- Toncoin: 48,109 (1.89%)
- Dogecoin: 84 (-0.18%)
Other major cryptocurrencies such as Ethereum (4.9%), Solana (8.8%), Toncoin (15%), Dogecoin (4.7%), and Avalanche (5.3%) also experienced significant surges.
Edul Patel, the CEO of Mudrex, mentioned, “Bitcoin initially dropped to \(62,000 before recovering to \)65,000 over the weekend due to increased liquidations and escalating geopolitical tensions between Iran and Israel.” He added, “Bitcoin has been consolidating within the \(60,000 to \)73,000 range recently. The \(60,775 level is being defended by the bulls. The immediate support for Bitcoin is at \)64,500, with resistance at $67,900.”
On the other hand, the CoinDCX Research Team stated, “With the Bitcoin halving approaching, we may witness heightened volatility in the market.” The global cryptocurrency market cap saw a 2.31% increase to approximately $2.38 trillion within the last 24 hours.
The DeFi total volume stands at \(10.06 billion, representing 8.84% of the total crypto market 24-hour volume. Additionally, stablecoins’ volume has reached \)104.98 billion, constituting 92.20% of the total crypto market 24-hour volume, as reported by CoinMarketCap.
In the past 24 hours, the market cap of Bitcoin, the leading cryptocurrency globally, surged to \(1.307 trillion. Bitcoin’s dominance currently stands at 54.09%, according to CoinMarketCap. The 24-hour BTC volume decreased by 27.45% to \)42.56 billion.
The recent spike in oil prices has heightened concerns about further inflationary pressures. Israel’s statement regarding a potential strike on Iran in response to attacks originating from Iranian territory has added to the geopolitical tensions. Brent crude surpassed \(92 for the first time in nearly six months on Friday, subsequently retracting to \)90.30.
Tech View by ZebPay Trade Desk
Agencies
Bitcoin achieved a new all-time high of \(73,777 before undergoing profit booking, leading to a 17% correction down to \)60,775. The bulls successfully defended the crucial support level of \(60,000, propelling the prices back towards the \)70,000 mark. However, sustaining above $70,000 proved challenging, resulting in a minor correction.
BTC reached a weekly low of \(60,660 and is striving to establish solid support at \)60,000. A sustained hold above this support level may signal a resumption of the bullish trend. To trigger another rally, Bitcoin must surpass, close above, and maintain the all-time high of $73,777.
Key Levels:
- Support 1: $60,000
- Support 2: $56,000
- Resistance 1: $69,500
- Resistance 2: $73,777
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts are their own and do not reflect the opinions of The Economic Times)