Bitcoin has incurred some serious upwards momentum today, which comes close on the heels of the cryptocurrency’s recent sell off that sent it as low as $6,800. Today’s bullish surge further enhances the narrative regarding BTC’s recent lows within the lower-$6,000 region possibly marking a long-term bottom.
Further adding to this notion is the growing global instability that was sparked by yesterday evening’s US-led airstrike on an Iranian military official, which closely preceded a price surge for assets like Gold, Crude Oil, and even Bitcoin.
Will Global Instability Help Fuel a Bitcoin Rally?
Although the prospect of a war with Iran is grim, it would prove to be beneficial for some asset classes, including precious metals, commodities like crude oil, and possibly Bitcoin and other digital assets.
It still remains unclear as to whether or not BTC is truly a safe haven asset, as its short lifespan and the fact that it has never traded within a global economic recession makes it incredibly unclear as to how it would truly fair during any period of intense global turmoil.
In the near-term, however, analysts do believe that Bitcoin could see some upwards momentum, with CryptoBirb, a popular analyst on Twitter, telling his followers that BTC could soon surge up to $8,000 if it is able to break above $7,500.
“$btc may pull 8000s if 7.5k bull flag breakout is safely reclaimed as support. If you can’t monitor market today often playing any aggressive swing may be recipe for failure imo. Wouldn’t be surprised if US-Iran expanded tensions repeated China tensions May 2019 impact on Bitcoin,” he said while pointing to the chart seen below.
$btc may pull 8000s if 7.5k bull flag breakout is safely reclaimed as support
if you can't monitor market today often playing any aggressive swing may be recipe for failure imo
Wouldn't be surprised if US-Iran expanded tensions repeated China tensions May 2019 impact on bitcoin pic.twitter.com/lus6ZHUZj9— CRYPTO₿IRB (@crypto_birb) January 3, 2020
Although it also remains unclear as to what will ultimately result from the tensions between the US and Iran, it is possible that investors will flock to Bitcoin in anticipation of it trading like a safe haven asset.
Bitcoin Jack, another popular crypto analyst on Twitter, explained in a recent tweet that he believes it is still too early to go long on BTC, but that if it confirms the pending inverse head and shoulders pattern, it may be poised for significantly further upside.
“Best not ignore these technically correct (so far) potential bullish structures. Not completed, but formation so far follow iHS guidelines. Can’t go long here. 7470-7700 is short hedge but stop should go BE fast. Retracement is aggressive buy option. Break, retest for confirmation,” he explained.
Best not ignore these technically correct (so far) potential bullish structures
Not completed, but formation so far follow iHS guidelines
Can't go long here
7470-7700 is short hedge but stop should go BE fast
Retracement is aggresive buy option
Break, retest for confirmation pic.twitter.com/wFgVToGf49
— //Bitcoin 𝕵ack 🐐 (@BTC_JackSparrow) January 3, 2020
How BTC trend in the coming days will likely either validate or invalidate the notion that Bitcoin’s current momentum is being catalyzed by the growing global tensions.