Analysts Remain Cautious Despite Bitcoin Rise as US & Iran Halt Strikes, Here’s Why
Highlights
- Bitcoin price jumped 2% after the US and Iran suspended strikes.
- US and Iran retaliated against recent strikes over the control of the Strait of Hormuz.
- Analysts stay cautious and predicts further drop in Bitcoin price.
Bitcoin price jumped 2% after the US and Iran agreed to halt strikes over control of the Strait of Hormuz. However, top analysts such as Rekt Capital, 10x Research’s Markus Thielen, Benjamin Cowen, and Cheds Trading remain cautious about an immediate recovery in Bitcoin and the broader crypto market.
US-Iran Suspend Strikes Sparks Modest Bitcoin and US Stock Futures Gain
Bitcoin and US stock futures are rising following reports that the US and Iran have agreed to halt attacks. This comes as peace talks resume in Qatar this week, Axios reported on June 29.
The conflict escalated after Iran targeted a container ship carrying Qatari oil. The US government revealed retaliatory strikes on Iran after the market closed on Friday. This caused Iran to strike US military bases in Kuwait and Bahrain, escalating Middle East tensions.
Market participants and experts noted that the announcement comes just one hour before US stock market futures are set to reopen. “Carbon copy headline every Sunday evening,” said zerohedge.
Bitcoin price jumped from a 24-hour low of $58,856 to $60,089. The price is currently trading at $59,856, with a 24% rise in trading volume.
Analysts Stay Cautious amid Technical Weakness
Despite Bitcoin rebounding after the US and Iran agreed to suspend strikes, analysts have remained cautious over immediate recovery. Several factors such as geopolitical, macro, and technical are keeping analysts on edge.
Popular analysts Cheds Trading and Benjamin Cowen noted that Bitcoin saw its lowest daily close since 2024 and its first close below the 200-week moving average (200-WMA) since 2023. The US strikes came despite the U.S. Senate passed the War Powers Act.
Rekt Capital predicts $61K as the key resistance and Bitcoin price failed to surpass it for the fourth consecutive day. “With the new Weekly, Monthly and Quarterly candle closes all just around the corner, it would be wise to wait to observe those first confirmations for additional insight,” he said.
He recommends investors to wait for June’s monthly close as that would reveal levels where a potential July relief rally would start. Cheds Trading agreed with Rekt Capital on risks of further drop amid technical chart weakness.
Top analyst Markus Thielen revealed their Bitcoin trend model turned bearish on May 22, when Bitcoin traded at $75,600. It has remained bearish despite buy-the-dip sentiment.
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