Bitcoin skyrocketed $ 8400 when President Trump wanted “all or nothing” with Iran and retaliated with two US airbases in Iraq caught “13 rockets”
The Bitcoin price hit a new high in 2020, marking an excellent start for the new decade, after news of Iran’s military attack on the US airbases in Iraq.
Iran attacks with rockets
The Middle East situation is tenser than ever. On January 3, the Pentagon carried out an airstrike against Iran and killed General Quasem Soleimani, as AZCoin News reported.
Since then, the two sides have taken reciprocal actions on the media as well as by the military.
At the funeral of General Soleimani, a eulogy reader was stirred when calling on people to contribute $ 80 million to get Mr. Trump’s head. However, the Iranian government claims this has not been accepted by the Tehran government and is not its official position. Despite this, the Iranian President vowed to respond harshly to the United States.
US military forces closed in on Iran, B52 sortied, and nearly 100,000 US troops were ordered for a battle-ready. As the war drew near, the United States was ready to ‘engage’ with Iran.
However, Iran is one step ahead. They attacked with rockets on US military bases in western Iraq. On the morning of January 8, up to 13 rockets were fired at US airbases Ain Al-Asad (referred to as Asad) in Iraq, a senior military source in Iraq told CNN.
Iran’s Fars news agency posted a video on Twitter late Tuesday describing what alleged rockets Iran fired at Ain al-Assad military base in Iraq.
? «انتقام سخت» آغاز شد/ حملات سنگین موشکی سپاه به پایگاه آمریکایی عینالاسد pic.twitter.com/sbw0cwGH6B
— خبرگزاری فارس (@FarsNews_Agency) January 7, 2020
Not just the Asad military airbases were attacked. Iran also fired rockets at Erbil base in northern Iraq, a US official confirmed.
The Pentagon confirms:
“Iran launches more than 12 ballistic rockets into US military and coalition forces in Iraq. These rockets are launched from Iran and are aimed at least two military bases in Iraq with US and ally Al-Assad and Irbil allies.”
According to a close source, Iran has prepared 13 scenarios in retaliation. According to the secretary of the Iranian national security council, even the most restrictive options will be a “historical nightmare” for the US.
Bitcoin price rose on Tuesday after reports of Iran’s rockets attacks, bringing BTC to its highest level since mid-November.
After the news that the US killed an Iranian general, Bitcoin jumped to the $ 7400 area after Iran responded to the US with 13 rockets, led to the risk of war outbreaks, Bitcoin price broke the psychological level of $ 8000 and soared to a peak of $ 8463 in just over 40 minutes at dawn on January 8.
Source: Trading View
The move to new highs in 2020 supposedly to be the movement by traders to reallocate capital into safe-haven assets like gold and oil as well as for cryptocurrencies, especially Bitcoin.
Is Bitcoin ready to go higher?
Over the past week, BTC prices have risen by 16%, marking an excellent start for the new decade.
Analysts, though, began to fear the worse when they observed that in the low- $ 8,000 range, Bitcoin is approaching a multitude of resistances.
Josh Olszewicz of Brave New Coin noted that BTC is currently trying to surpass the yearly axis level, the 200-day exponential moving average, and the daily Ichimoku Cloud.
big zone of resistance confluence for $BTC here
– yearly pivot
– 200-day EMA
– 1.618 fib of iH&S pic.twitter.com/FOo9NGPf2t
— Josh Olszewicz (@CarpeNoctom) January 7, 2020
This was echoed by another analyst, who said that Bitcoin is currently trying to cross the downtrend line that has been limiting price action for about seven months now.
8350 hit, basically sitting on macro downtrend now
the question remains is this an abc bear market rally or does the ⬇️trend break and we go up in 5wave marking the bottom?
this is the critical level to watch and all we can do is w8 now
i know many are but im not shorting this pic.twitter.com/JM25MBTM5T
— ??Benjamin Blunts?? (@SmartContracter) January 8, 2020
Although BTC will likely surpass these levels, the advantage is not in favor of the bulls. Technical trends have emphasized the fact that Bitcoin is approaching key resistance levels.
Before moving on to $ 8,400, CryptoHamster analyst posted a chart showing that the three indices show that Bitcoin is significantly overextended in terms of price increases.
Daily RSI wasn’t that high even after a 3000$ pump in October. Not to mention oscillators and 6 green daily candles in a row (and 8 red on TD sequential, by the way).
Just saying. $BTC $BTCUSD #bitcoin pic.twitter.com/8oAioMEJlq
— CryptoHamster (@CryptoHamsterIO) January 8, 2020
More specifically, the relative strength index RSI, Stochastic Oscillator, and Stochastic RSI are indicators to track the direction of an asset, is currently recording a higher level than the pump to $ 10,600 of Bitcoin at the end of October 2019.
After that pump, the BTC price dropped significantly to a lower level than before the spike. Additionally, Bitcoin’s chart has formed three consecutive bullish candles, a trend that has rarely been seen in the past few months.
As such, it is unlikely that Bitcoin will continue to rise higher from $ 8,400 as the market is likely to be overbought.
Gold rose 6% against the US dollar since Soleimani’s death, while Bitcoin rose 23% in the same period. Both assets have recorded a large portion of their profits following conflicting news.
So if there are new developments in conflicts and gold rally, Bitcoin is highly likely to be able to avoid the above discount factors and continue to climb higher.
$BTC up 23% following Soleimani’s death
Noisy coincidence, or is #bitcoin maturing into a “digital gold” safe haven asset? pic.twitter.com/YWuTE1OvVN
— The Crypto Dog? (@TheCryptoDog) January 8, 2020
Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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