CandleFocus

Bitcoin stabilizes at crucial support after major crash

Author: Content Editor
Bitcoin (BTC) has declined over 7% this week and is trading near a crucial support level. A sustained close below this level could indicate further declines. However, data from BlackRock suggests that Bitcoin has historically outperformed Gold during geopolitical tensions in the long term. Ki Young Ju, the founder of CryptoQuant, believes that BTC whales are unlikely to sell at the moment. QCP Capital's report indicates that the cryptocurrency market experienced greater volatility during rising tensions in the Israeli-Iranian conflict, with Bitcoin dropping 4%. The report also suggests that China's policies and economic situation could support asset prices globally, including crypto. Sentiment data shows that conflicts between Iran and Israel have led to increased interest in war-related topics among crypto communities. Young explains that new Bitcoin whales, mainly custodial wallets and ETFs, are unlikely to sell until liquidity from retail investors enters the market. Bitcoin's price is hovering just above its 200-day Exponential Moving Average (EMA), and momentum indicators indicate potential downward momentum. If BTC closes below its 200-day EMA, it could retest its September 18 low. On the other hand, if it rises above $62,000, it could rally to retest its resistance at $66,000.

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