to leave a comment.
▲ Bitcoin (BTC)/AI generated image
Bitcoin (BTC) is engaged in a fierce battle around the $70,000 mark amidst the geopolitical crisis in the Middle East. A record-breaking movement of funds into cash-like assets is, paradoxically, interpreted as a signal that the market is nearing its bottom.
On April 9 (local time), cryptocurrency analyst Lark Davis explained in a video published on his YouTube channel that truce negotiations between U.S. President Donald Trump and Iran are facing difficulties. The threat of a Strait of Hormuz blockade is increasing uncertainty in both virtual assets and traditional financial markets. Upward pressure on oil prices stimulates investors' risk-aversion sentiment. The progress of negotiations between President Trump and Iran will be a key variable determining the market's direction.
Bitcoin is currently retesting its 50-day exponential moving average at the center of its price channel. Davis established a long position for Bitcoin at the $71,070 level. He identified $70,000 as a critical psychological last line of defense that must be held. If it successfully holds support, a rally towards $77,000 is possible. Conversely, if the support breaks, there is a risk of a sharp decline to $56,000.
Ethereum (ETH) and Zcash (ZEC) are also moving near major resistance levels. Ethereum needs to settle above $2,300 on a daily closing basis to gain upward momentum towards $2,800. Zcash recently saw a surge in trading volume due to support from a famous investor. Whether it breaks through the major resistance of $320 is key to a price breakout. If the market downturn continues, Ethereum could fall to the $2,000 level.
Inflows into money market funds have reached an all-time high. This is an indicator reflecting market fear. Past statistics show that such a shift to cash typically occurs just before the market bottoms out and rebounds. A signal of the S&P 500 index simultaneously breaking above its 50-day and 200-day moving averages has also been detected. In past instances, this signal has also hinted at a correction due to short-term overheating.
Meta successfully achieved a technical rebound by unveiling its new AI model, Muse Spark. Tesla, on the other hand, showed weakness with continued large-scale selling. Participants in the virtual asset market are closely watching the results of geopolitical negotiations and economic data releases. Whether Bitcoin and Ethereum hold their key support levels is expected to determine their short-term direction.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
Newsletter
Get key news delivered to your email every morning
to leave a comment.