Bitcoin has avoided a fresh breakout around major geopolitical events in the Middle East, and BTC price targets now include $74,000.
Bitcoin (BTC) shrugged off geopolitical volatility on Sunday as traders awaited the reaction of Iranian markets.
Main points:
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Bitcoin hovers around $67,000 as the dust settles on a wild weekend in the Middle East.
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TradFi market reactions are in focus and BTC price action is avoiding major volatility.
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Oil prices are worried as Iran wants to close the Strait of Hormuz.
The trader sees a BTC price rally to $74,000
Data from TradingView showed that BTC price action centered around $67,000 following the latest round of conflict in the Middle East.
The weekend prevented TradFi markets from adjusting to real-time events, with US stock market futures down 0.65% at the time of writing.
Crypto also saw volatility, but cooled off quickly, with BTC/USD avoiding a major breakout from its local trading range.
Commenting, crypto trader, analyst and entrepreneur Michael van de Poppe described the initial response as “positive”.
“Right now, the markets are moving back down because there is uncertainty about how the US markets will open tomorrow (and there is still a prominent CME gap),” he said in a post on X.
“On the other hand, the 21-day MA needs to be broken to have a bearish rally. I think we’ll see that in March/April, the question is how do we open the markets tomorrow and if it finds a lower.”
Van de Poppe pointed to Bitcoin’s 21-day simple moving average at $67,627. The CME Group’s Bitcoin futures market fell to $65,880 over the weekend.
“$BTC looks good in the short term,” agreed a BitBull trader on the three-day chart.
“The deviation from the support zone has now turned resistance into support. I think a rally to the $73K-$74K level could happen.”
Some have argued that geopolitical volatility has been “pre-priced” by the market, explaining the relatively modest price action over the weekend.
“We will likely move sideways in the coming days…” concluded Crypto trader Caesar.
The Strait of Hormuz is linked to the next rise in US inflation
A particular point of concern is the potential volatility of oil prices as Iran claims to close the Strait of Hormuz.
related to: Historical Bitcoin Price Metrics See $122k “Reversion to the Mean” Over 10 Months
Despite being international waters, the strait became an oil shipping hub on Sunday, prompting a quick analysis of the shock’s impact on US inflation.
A trading source in the Kobeissi Letter cited JPMorgan research while suggesting that the Consumer Price Index (CPI) could rise to 5%.
“The last time we saw US inflation hit 5% in March 2023, the Fed aggressively raised rates,” it wrote in a dedicated X thread.
As reported by Cointelegraph, inflation in the US is higher than expected, especially the producer price index (PPI) numbers on Friday.
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