Bitcoin held near $70,900 on Monday, facing potential downward pressure as geopolitical tensions escalated. Former President Donald Trump announced a blockade of the Strait of Hormuz, intensifying conflict with Iran and jeopardizing ceasefire talks. This development triggered a broad market sell-off in Asia, with major indices like India’s Sensex falling sharply. Against this backdrop, a trading analyst predicted Bitcoin could decline to the $38,000 range, citing an ongoing bear cycle.
Bitcoin traded near $70,900 on Monday, hovering in a range as geopolitical risks resurfaced. The stability came amid reports that US-Iran ceasefire talks were falling apart following a significant escalation.
Former President Donald Trump announced a move to block the Strait of Hormuz, prohibiting all Iranian ships. Analysts warned this action would intensify the conflict and strain diplomatic efforts, creating market uncertainty.
The financial impact was immediate across Asian equity markets at the open. India’s Sensex dropped over 700 points, while Japan’s Nikkei and Hong Kong’s Hang Seng also fell sharply. This broad bearish sentiment was expected to soon affect cryptocurrency markets, with Bitcoin seen as particularly vulnerable.
Amid this backdrop, a market analyst shared a stark technical forecast for Bitcoin. Leading market analyst TradingShot projected the cryptocurrency could bottom around $38,000.
The analyst stated, “BTC has been within a 6-month Bear Cycle and most likely has another 6 months left.” They based this on a Fibonacci channel analysis comparing previous cycles.
The forecast detailed two potential downside targets for Bitcoin’s price. “As a result, we expect Bitcoin’s next Low to be around $47,000 with a final bottom around $38,000 being possible,” the analyst summarized. They noted the final level would depend on circumstances requiring weekly monitoring.
