Markets
Bitcoin Price Prediction as Global Markets React to Iranian President’s Helicopter Crash – War Potential?
Last updated: May 20, 2024 04:33 EDT | 3 minutes of reading
Bitcoin (BTC) halted its decline and regained momentum, surpassing $67,000 and hitting an intraday high of $67,600.
After briefly falling below $66,000, Bitcoin rebounded due to expectations of rate cuts from the Federal Reserve and growing tensions in the Middle East, notably following the helicopter crash involving the Iranian president.
These factors have led investors to consider Bitcoin as a hedge against economic and geopolitical uncertainty.
Going forward, crypto traders will focus on speeches from Fed officials Bostic, Bullard, Waller, Evans, and Mester as these will provide insight into future monetary policy.
The hawkish comments from these officials could limit Bitcoin’s upward trend by signaling a tightening of monetary policy, reducing the appeal of riskier assets like cryptocurrencies.
Bitcoin as a safe haven amid geopolitical unrest
Bitcoin often gains value as a safe-haven asset during periods of geopolitical unrest or economic uncertainty. Recently, Iranian President Ebrahim Raisi and Foreign Minister Hossein Amirabdollahian died tragically in a helicopter crash in the province of East Azerbaijan.
Rescuers found the crash site after searching in difficult weather conditions.
- The Iranian vice president will assume presidential duties.
- New elections are planned within 50 days.
- Middle Eastern countries are showing solidarity with Iran during this difficult time.
The perception of Bitcoin as a safe haven can lead to increased demand and a rise in the price of BTC in such crises.
Fed Rate Cut Expectations Boost Bitcoin Amid Economic Uncertainty
The U.S. dollar as a whole fell slightly as investors anticipated possible rate cuts from the Fed. Richmond Fed President Thomas Barkin noted that even as inflation slows, reach the 2% target will take more time. Cleveland Fed President Loretta Mester said current monetary policy is appropriate as she continues to evaluate economic data.
Fed Governor Michelle Bowman has said that while policy is restrictive, she is open to raising rates if inflation stagnates.
According to CME FedWatch ToolMarkets have priced in a 10% probability of a rate cut in June and almost 80% in September.
The prospect of a Fed rate cut and cautious monetary policy comments are contributing to increased uncertainty and volatility in financial markets. This environment is leading investors to seek alternative assets like Bitcoin (BTC) as a hedge against inflation and economic instability, thereby increasing its price.
BTC/USD is currently trading at $66,927, up 1.01% with an uptrend. Bitcoin Price Prediction. The 4-hour chart shows the pivot point at $65,984, a crucial level for short-term price action.
Immediate resistance lies at $67,443, followed by $69,156 and $71,194. On the other hand, immediate support lies at $64,617, with additional support at $63,040 and $61,328.
The relative strength index (RSI) is at 59, indicating moderate momentum. An ascending triangle pattern is forming, with resistance around $67,443 and support at $65,985, generally signaling a potential breakout higher.
The 50-day exponential moving average (EMA) at $64,562 supports the bullish outlook.
Current Trend: Bitcoin remains bullish above $65,984. A break below this level could trigger a strong selling trend.
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