Iranian attack temporarily cripples crypto and American stocks

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Last Updated on 2 October 2024 by CryptoTips.eu

A short but powerful cruise missile attack by Iran on Israel briefly stopped the rise of Bitcoin and the US stock markets last night. As we’ve mentioned several times in the past week, all economic data may be good, but nothing can match the geopolitical threat of an extensive war in the Middle East.

Yet despite this decline, Bitcoin’s overall trendline remains positive as we managed to break out of the downtrend channel last week. A temporary setback is normal, as long as we rise again afterwards.

At the time of writing, the largest digital currency is trading for $61,700.

Advertentie.

Breakout downtrend

You may not have noticed since Bitcoin hasn’t really dropped below $50,000 since March, but the largest digital currency has been in a downtrend for the past six months, which started after it set a new All Time High in mid-March.

Ever since then, every attempt to go past $70,000 has failed, with Bitcoin falling ever lower before making another attempt to break through.

However, the break above $65,200 last week brought us out of that downtrend for the first time in six months.

That data point, combined with the fact that October is normally a fabulous month for Bitcoin, and all the economic signals that are flashing green, makes many investors think that the next few weeks could be very positive indeed.

Do note however that we can go down for a while before we go up again. A nod back below $60,000 is possible this month, as long as we try to break $70,000 again and end the month on a positive note.

Asian signals

On top of this, small crypto traders in South Korea (roughly the largest crypto market compared to the size of the local population) have started buying Bitcoin again in recent weeks.

Daily crypto trading volume in South Korea is now around $2 billion. That is still a lot lower than the $13 billion in crypto trading volume we saw every day in the first two weeks of March 2024 (when the record of $74,000 per Bitcoin was set), but a clear increase compared to the last two months.

So it may be a bit too early for FOMO, but technically the overall picture looks very nice indeed (even if Bitcoin dropped rapidly yesterday evening).

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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