If there was any doubt about the reason behind the recent surge in the price of Bitcoin, the market behaviour after Donald Trump’s press conference settles it. Several hours after the Iran fired missiles towards American bases in Iraq, the US President has come out to declare that there is nothing to worry about.
In his press conference, Trump acknowledged the firing of missiles by Iran towards US bases in Iraq. However, he assured Americans and the world that no casualties were recorded, neither was any of his nation’s facilities hit. Therefore, there was no cause for possible retaliation yet. His statement comes across as an assurance that for now both countries are not going to war against each other.
A different Kind of War
Shortly after Trump’s press statement, Bitcoin price pulled back to below $8,000. By interpretation, analysts believe that the uncertainty that fueled the search for safe haven has been quelled. Investors might be reverting back to the traditional investment instruments that they have been with. Possibly, potential buy orders on the Bitcoin marketplace are likely being cancelled, pending what happens in the coming days.
This development does not come as a condemnation for Bitcoin to reverse back to a downward trend. Far from it, the possibility of a continued upward trend still exists. For Bitcoin, the war has shifted from a political atmosphere to a battle between bulls and bears in the Bitcoin marketplace. It is during times like this that the technical traders pull out their arsenals and display their skills.
There are always bulls and bears in the marketplace at any given time. Market direction depends on the group with the upper hand. While speculators have stepped aside, having considered the possible consequences of fundamental factors, the charts take over. In times like this, market data and chart patterns take over and become the compass that directs the market.
Time to Observe and Study the Markets
The looming uncertainty in the Middle East is yet to be completely aborted. What we have now can be described as a temporary withdrawal, with both parties still talking tough. One would also consider the possibility of attack from independent terrorist groups that could spike up the tension.
Obviously, we are in a very busy period in the area of world politics. Several nations are making statements that reveal on whose side they belong. That is what comes with warlike tendencies. And of course, you cannot talk about political unrest without considering the associated economic implications. If you had any doubts before, the price behaviour of Bitcoin in the past days is a valuable lesson.
Just as mentioned in our previous posts, moments like this are best approached by studying the marketplace ahead of finding a clearcut direction. Yes, several factors suggest that Bitcoin will grow significantly, when and how that will kick off is what we cannot say exactly for now. Therefore, traders are advised to tread cautiously and use protective measures in their activities.
Iyke Aru is a seasoned author and educator in the blockchain and cryptocurrency industry. He has been in the business of crypto content writing for many years with thousands of his articles across several platforms on the internet. Iyke is based in Nigeria where he stands out as one of the most informed and credible figures in the cryptocurrency industry. Outside blockchain and crypto, you will most likely catch Iyke playing or discussing football with friends and family.