Growing Tensions Impact Bitcoin and Other Risk Assets
Recent escalating tensions between Israel and Iran are raising concerns globally, particularly affecting risk-on assets like Bitcoin (BTC). Over the last 24 hours, Bitcoin, the leading cryptocurrency by market cap, saw a decline of 1.7%. However, there are still indications that BTC could potentially reach new all-time highs in the coming months.
Bitcoin Following ABCD Patterns
According to a post from crypto analyst Titan of Crypto on X, Bitcoin seems to be moving in accordance with the ABCD pattern. Analysts indicate that if BTC manages to break out from its current wedge formation, it could soar as high as $137,000.
For those unfamiliar, the ABCD pattern is a well-known chart structure consisting of four points and three legs. Typically, the lengths of AB and CD are similar, while BC acts as a retracement segment. This can be useful for pinpointing possible reversal zones, especially if price movements start losing steam.
Other technical indicators also hint at potential new all-time highs for BTC. For instance, analyst Crypto Caesar has pointed out a bullish double-bottom pattern that appears on Bitcoin’s four-hour chart, suggesting that an upward trend could be imminent.
Meanwhile, another commentator, Jelle, has recognized a ‘cup and handle’ formation on the daily BTC charts. This pattern indicates that BTC is forming a “cup” and might soon create a “handle,” which often precedes a significant price increase.
Crypto trader Merlijn The Trader has also highlighted the hash ribbon, a notable on-chain indicator linked to major price movements. He suggests that the last four occurrences of this signal have led to strong uptrends in Bitcoin’s price.
The hash ribbon uses the 30-day and 60-day moving averages of Bitcoin’s hashrate to assess surrender and recovery phases. A bullish signal emerges when the short-term moving average exceeds the long-term average.
Are Bitcoin Bears Gaining Strength?
Although Bitcoin remains above the critical $100,000 threshold, observations indicate a shift. Recently, it faced resistance at the $110,000 level, giving bears a momentary advantage.
On-chain data suggests long-term holders are starting to exit the Bitcoin market, as retail investors enter, a typical sign observed late in bullish markets.
Conversely, the reliability of short-term holders appears to be waning, as indicated by the latest chain activity. Currently, BTC is trading at around $105,568, showing a 1.7% decrease in the last 24 hours.
