US-Iran Conflict Reignites! Bitcoin Market Shaken Again

▲ US, Iran, Bitcoin (BTC)/AI generated image ©

As the military conflict between the United States and Iran re-escalated, Bitcoin (BTC) fell below $80,000, and risk-off sentiment is rapidly spreading across the cryptocurrency market.

According to FXStreet, an investment media outlet, on May 8 (local time), the US Central Command (CENTCOM) announced that the US military struck Iranian military facilities that attacked three US Navy destroyers passing through the Strait of Hormuz. As tensions in the Middle East escalated again, international oil prices surged, and risk asset preference sentiment contracted, putting downward pressure on Bitcoin.

The Fear & Greed Index, based on CoinMarketCap, fell to 46 on this day, indicating that the market sentiment has once again shifted to a 'risk-off' phase. Bitcoin traded below $80,000, continuing its downward trend from the previous day, but an analysis suggested that the long-term upward trend itself is still alive, as it remained above the 50-day Exponential Moving Average (EMA) of $75,326 and the 100-day EMA of $76,271.

The technical trend was also not completely broken down. The Relative Strength Index (RSI) moved around 60, maintaining an unheated state, and the Moving Average Convergence Divergence (MACD) also remained in the positive territory. However, the media diagnosed that the buying pressure was closer to slowing down rather than strengthening. In the market, $81,871, where the 200-day EMA is located, is attracting attention as a key short-term resistance level.

Meanwhile, in the altcoin market, Ondo (ONDO), World Liberty Financial (WLFI), and Virtuals Protocol (VIRTUAL) showed strength. Ondo traded above $0.3500 after a 9% surge the day before, and its RSI soared to 83, entering the overbought zone. WLFI continued its rebound for six consecutive trading days but remained below the mid-to-long-term EMAs, while Virtuals Protocol broke through all 50-day, 100-day, and 200-day EMAs, continuing a strong upward trend.

The market expects that if Bitcoin recovers the $81,871 resistance level, the possibility of re-challenging $90,000 will open up. Conversely, if the support level in the $76,000 range, where the 100-day EMA and 50-day EMA are located, breaks down, there is an analysis that the possibility of a correction to around $69,436, where the long-term uptrend line is located, could increase.

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