Iran vs. USA: Gold and Oil Prices Rise – $ 8,800 Bitcoins Next Target?
Iran vs. USA: Gold and Oil Prices Rise - $ 8,800 Bitcoins Next Target?
Twice in the past week, bitcoin prices have reacted strongly to escalating geopolitical tensions and strengthened BTC’s status as a safe investment.
Bitcoin rises 10% after Iranian missile attacks
In the past few hours, BTC has hit a seven-week high of $ 8,450, according to Tradingview.com. This move has risen almost 10% since yesterday’s intraday low of $ 7,700.
Since the momentum that has used last Friday after the US raid in the Middle East, Bitcoin was an impressive 22% down. The rally is not yet as big as the pump triggered by China at the end of October – but it has the potential to do so.
The trigger was the retaliation by Iran a few hours ago. More than a dozen missiles have been reported to have been launched at two Iraqi bases known to house US military personnel.
US President Donald Trump seems happy about the conflict and the possibility of a total war, tweeted after the attack “Everything is good” and “So far, so good!”.
All is well! Missiles launched from Iran at two military bases located in Iraq. Assessment of casualties & damages taking place now. So far, so good! We have the most powerful and well equipped military anywhere in the world, by far! I will be making a statement tomorrow morning.
— Donald J. Trump (@realDonaldTrump) January 8, 2020
The escalating tensions underpin the argument that Bitcoin is a safe investment in times of crisis, just like Trump’s trade war with China last year. New capital flows into the asset that has reached new highs for the year.
Analyst and trader ‘Crypto₿irb’ found the correlations:
“Btc went exponentially when Trump announced the China trade war (5-> 14k). btc went up exponentially when Trump announced the war in Iran.”
Is new ATH coming?
•btc went exponentially when Trump announced China Trade war (5->14k)
•btc is going up exponentially when Trump announced Iran war
— Crypto₿irb (@crypto_birb) January 8, 2020
Just like last week, other safe assets like gold and oil have skyrocketed. The price of gold has passed the $ 1,600 / oz mark today – a new six-year high. The price of oil is also on the rise at the moment.
Bitcoin has firmly established itself among them as a safe haven that attracts new funds in times of need.
Where’s next for BTC?
Now that the longer-term technical indicators are moving up and the trend lines have been broken, analysts are recognizing Bitcoin’s next step.
Analyst Josh Rager adds:
“BTC looks strong after the news of the attack on the US base … could continue to rise.”
$ 8,800 seems to be the next short-term resistance level that Fib retracements are targeting. A longer-term goal is the 200-day MA, which is currently $ 9,200.
$BTC looking strong after the U.S. base attack news
Could continue to rip up though prior targets to short
I canceled all shorts in the $8400s and will continue to keep an eye on the news and charts
Hope everyone overseas stays safe
— Josh Rager 📈 (@Josh_Rager) January 8, 2020
In short: The haunted specter of war combined with bitcoin halving could give us the mother of all rallies in 2020.