TLDR
Bitcoin drops 5% amid Israel-Iran tensions, highlighting crypto’s volatility in global conflicts.
Technical analysis suggests Bitcoin’s next target could be between $97,100-$97,900 in ongoing C-wave correction.
Retail sentiment shifts as Bitcoin nears $101K, with panic selling possibly signaling a bottom for experienced traders.
Gold hits record highs while Bitcoin struggles to maintain stability, raising questions about its safe haven status.
Bitcoin price has experienced a significant price drop in the past few hours, following reports of escalating tensions between Israel and Iran. As the situation intensifies and fears of global conflict rise, Bitcoin’s value has dropped more than 5%, reaching new lows.
Global Tensions Fuel Bitcoin Price Volatility
The news of Israel bombing Iran has created panic among investors, with concerns over the potential for World War III dominating headlines worldwide. This geopolitical event has triggered a risk-off sentiment in the market, causing traditional assets like stocks to slide, and Bitcoin is no exception.
As of Friday, Bitcoin dropped to a low of $105,600, down 3.5% from its weekly high of $110,653.
The market sentiment reflects the uncertainty brought on by the worsening conflict. Investors are reacting by cutting their risk exposure, which has led to Bitcoin’s downward movement. However, Bitcoin’s price fluctuation seems to align with expectations, given that BTC had recently surged by 10% in the first week of June. A 3.5% correction, according to experts, appears to be within the scope of a normal market adjustment.
Technical Analysis Shows C-Wave Correction Underway
From a technical standpoint, analysts Casitrades suggest that the current price action of Bitcoin aligns with an unfolding C-wave correction. The recent drop follows a perfect B-wave rejection at $110,200, which is considered a key resistance level in Elliott Wave Theory (EWT).
According to the analysis, the next target for Bitcoin could be between $97,100 and $97,900, where the macro .236 retracement and the 1.236 C-wave extension converge.
Despite the ongoing correction, the market is still uncertain about the future direction of Bitcoin’s price. On smaller timeframes (5-min to 1-hour), no clear signs of exhaustion are visible yet, which suggests that the market might not be ready to reverse in the short term. This makes it difficult for traders to predict Bitcoin’s next move, leaving many in a state of caution as global tensions persist.
Sentiment Shifts in Retail Trading Communities
The retail trading community has been reacting to Bitcoin’s price movement with mixed emotions. Data from Santiment, a crypto market analytics platform, shows that mentions of Bitcoin’s price predictions across social media platforms have shifted dramatically. As Bitcoin’s price neared the $101,000 mark between June 4th and 6th, many retail investors began predicting further declines, reflecting a sense of panic.
This shift in sentiment, according to Santiment, often signals a buying opportunity for more experienced traders, who may be accumulating Bitcoin while retail traders are selling.
The data also reflects the counter-intuitive nature of market predictions. When retail traders become overly pessimistic, it can often indicate that a price bottom is near. As of now, traders remain divided, with many waiting for larger market movements before committing to significant buys or sells.
Geopolitical Risks Raise Questions About Bitcoin’s Safe Haven Status
Amid the market turbulence, some analysts have raised questions about Bitcoin’s ability to act as a safe haven in times of geopolitical instability.
While traditional assets like gold have seen a surge in value, Bitcoin’s performance has been more volatile. Notably, gold has hit near-record highs, while Bitcoin has failed to show the same resilience.
Peter Schiff, a well-known gold advocate, reiterated his skepticism about Bitcoin’s role as a store of value. He pointed out that Bitcoin’s failure to remain stable during periods of heightened geopolitical risk only adds to doubts about its long-term viability as a safe haven. Schiff’s comments highlight the ongoing debate about Bitcoin’s stability during times of global economic and political uncertainty.
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