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Bitcoin Price Forecast as Global Markets React to Iranian President’s Helicopter Crash – Potential for War?
Last updated: May 20, 2024 04:33 EDT | 3 minutes reading
Bitcoin (BTC) halted its decline and regained strength, rising above $67,000 and reaching an intraday high of $67,600.
After briefly falling below $66,000, Bitcoin recovered due to Expectations of Federal Reserve Rate Cuts and the increase in tensions in the Middle East, especially after the helicopter crash involving the President of Iran.
These factors led investors to see Bitcoin as a hedge against economic and geopolitical uncertainty.
Looking ahead, crypto traders will focus on speeches from Fed officials Bostic, Bullard, Waller, Evans, and Mester as they will provide insight into future monetary policy.
Aggressive comments from these officials could limit Bitcoin’s upward trend by signaling tighter monetary policy, reducing the appeal of riskier assets such as cryptocurrencies.
Bitcoin as a safe-haven asset amid geopolitical unrest
Bitcoin often gains value as a safe-haven asset during periods of geopolitical turmoil or economic uncertainty. Recently, the President of Iran, Ebrahim Raisi, and the Minister of Foreign Affairs, Hossein Amirabdollahian, tragically died in a helicopter crash in East Azerbaijan province.
Rescue teams found the crash site after searching in challenging weather conditions.
- Iran’s vice president will assume presidential duties.
- New elections are scheduled within 50 days.
- Countries in the Middle East are showing solidarity with Iran during this difficult time.
The perception of Bitcoin as a safe-haven asset could lead to increased demand and a higher price for BTC amid such crises.
Fed Rate Cut Expectations Boost Bitcoin Amid Economic Uncertainty
The broad-based U.S. dollar fell as investors anticipated potential Fed rate cuts. Richmond Fed President Thomas Barkin noted that while inflation is slowing, reaching the 2% target it will take longer. Cleveland Fed President Loretta Mester said current monetary policy is appropriate as they continue to evaluate economic data.
Fed Governor Michelle Bowman mentioned that although the policy is restrictive, she is open to raising rates if inflation stagnates.
According to CME FedWatch Toolmarkets predicted a 10% probability of a rate cut in June and almost 80% in September.
The prospect of Fed rate cuts and cautious comments on monetary policy contribute to increased uncertainty and volatility in financial markets. This environment leads investors to seek alternative assets such as Bitcoin (BTC) as protection against inflation and economic instability, increasing its price.
BTC/USD is currently trading at $66,927, up 1.01%. Bitcoin Price Prediction. The 4-hour chart shows the pivot point at $65,984, a crucial level for near-term price action.
Immediate resistance is at $67,443, followed by $69,156 and $71,194. On the downside, immediate support is at $64,617, with additional support at $63,040 and $61,328.
The Relative Strength Index (RSI) is at 59, indicating moderate momentum. An ascending triangle pattern is forming, with resistance around $67,443 and support at $65,985, typically signaling a potential breakout to the upside.
The 50-day exponential moving average (EMA) at $64,562 supports the bullish outlook.
Current Trend: Bitcoin remains bullish above $65,984. A break below this level could trigger a strong selling trend.
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