The global crisis situation makes investors become conservative.
In the medium and long term, bullish expectations remain in force for bitcoin.
For the third day in a row, bitcoin (BTC) is testing $60,000 (USD) as support. This occurs after the perceived decline in the escalation of the war between Israel and Iran this week.
Thus, The bitcoin market is shown trying to sustain this price level that has functioned as a floor in multiple falls in the last seven months. In addition, it has acted as resistance when it declined from that area, so it is key that it is maintained for its bullish continuity.
Due to the psychology of traders, it is normal for support to become resistance in bearish trends and vice versa in bullish movements. Furthermore, because USD 60,000 is a round number, it makes this phenomenon more powerful. Therefore, it is a highly sensitive area for the market.
Bitcoin exchange-traded funds (ETFs) in the United States completed their second consecutive day of capital outflows yesterday. With such behavior, the streak of entries that had prevailed in these instruments during the last month was broken.
Although, it should be noted that ETF outflows have decreased in the last two dayswhich contributed to the price remaining at USD 60,000. Capital withdrawals in the instruments were USD 242 million and USD 91 million each day, respectively, as seen below.
With this behavior, bitcoin undid part of the price increase it registered in September, a historically bearish month for the market. Such a situation has been influenced by interest rate cuts in the United States and China, which increased liquidity in the economy. This is something that is expected to continue, so bullish expectations remain in the medium and long term, as reported by CriptoNoticias.
Bitcoin is trading in a key psychological zone
If the outflows continue, the price of bitcoin could lose the psychological zone of USD 60,000displayed below. With this, it could return to lower support levels recorded in the last seven months.
According to trader Scott Melker, host of the podcast “The Wolf of all Streets,” the current BTC pullback could be temporary. “This was largely due to temporary risk aversion caused by the escalation of the conflict between Israel and Iran,” he says. Therefore, he hopes that he will recover when this reaction passes.
“In fact, geopolitical conflict could be positive for bitcoin if it evolves into the safe haven asset we hope it will become,” Melker highlights. This is because, in times of uncertainty and instability, investors often look for assets that maintain value without depending on a particular economy.
