Get €3000Bitcoin Price May Drop to $60k as Trump Deadline to “Reign Hell” on Iran Nears
Bitcoin price dropped by 0.50% today, April 5, remaining inside a range it has been stuck at in the past few months. This consolidation may be followed by a strong bearish breakdown this week as President Donald Trump’s deadline to “reign on hell” on Iran nears.
Bitcoin Price at Risk as Donald Trump’s Deadline on Iran Nears
BTC price may drop sharply in the coming days as geopolitical risks rise. In a statement on Saturday, President Donald Trump threatened Iran to make a deal or reopen the Strait of Hormuz or the US would rain hell on the country. His ten-day deadline will end on Monday this week.
The statement came a few days after he warned to take Iran back to the “stone age, where they deserve.” This means the US will continue bombing Iran’s infrastructure projects, including bridges and power sources.
Analysts believe that these actions will lead to widespread Iranian retaliation, which will include bombing infrastructure in other countries in the region, including in countries like Kuwait, Saudi Arabia, and Israel. This will, in turn, lead to higher crude oil prices.
Indeed, data shows that crude oil perpetual futures on Polymarket have continued rising in the past few weeks, with the West Texas Intermediate (WTI) rising to $112 and becoming more expensive than Brent for the first time in years. Gasoline prices jumped to over $4 a gallon.
The implication of all this is that investors will embrace a risk-off sentiment, which explains why the Crypto Fear and Greed Index has slumped to the extreme fear zone of 20.
At the same time, it will lead to higher consumer and producer inflation, with the OECD predicting that the headline Consumer Price Index will jump to 4.2% this year.
Such a move will make it difficult for the Federal Reserve to cut interest rates, especially now that the US published strong non-farm payrolls data on Friday, which showed that the economy created 178k jobs as the unemployment rate fell to 4.3%.
BTC Price Prediction: Technical Analysis
The three-day chart reveals that the BTC price could be at risk of further downside in the near term. It has slowly formed a bearish flag pattern, which started forming in January when it plunged from $95,000 to a low of $60,000 in February. This plunge happened after it completed forming a bearish flag pattern.
It has now moved to the flag section of the pattern, which may lead to a strong retreat, with the initial target being at $60,000, which is slightly below the extreme oversold level of the Murrey Math Lines tool.
The bearish outlook is also supported by other technical indicators. It has dropped below all moving averages, and the Supertrend indicator, a sign that bears have prevailed.
On the other hand, a rebound above the Ultimate Support level of $75,000 will invalidate the bearish forecast.
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