- Bitcoin retreated amid tensions in the Strait of Hormuz and rising oil prices.
- Experts say that a low appetite for high growth reduces risk.
- The bulls want $82,000 in damages, but the bears can fight for at least $78,000 in damages.
Bitcoin fell to around $79,200 in early trading on Friday as fresh military conflicts in the Strait of Hormuz rocked the global economy.
The crypto bellwether was witnessing a sharp intraday pullback after a brief run above $80,000, with the latest price hike showing weakness amid potential political upheavals.
However, despite this, is the “bear trap” of the game?
Iran ceasefire disrupts Bitcoin power
Bitcoin soared above $82,500 on Monday, sparking bullish sentiment in the cryptocurrency market.
However, BTC has reversed course as selling pressure resumed, dropping to support near $79,200.
The drop coincides with renewed tensions in the Strait of Hormuz after Iran accused the United States of hitting an oil tanker, prompting retaliation by the Islamic Revolutionary Guard Corps (IRGC) against US warships.
The US reportedly responded with counterstrikes.
Energy markets reacted quickly, with Brent crude retreating above $100 a barrel as local tensions fueled fears of an oil shortage at the world’s largest oil refinery.
According to SosoValue, the explosion has raised new concerns in the so-called “14-point deal”, a diplomatic process aimed at establishing stability in the region.
However, the platform says that President Donald Trump’s insistence that the ceasefire remains in place, and Washington’s framing of its actions as “self-defense,” shows a lack of interest in a major escalation.
“If both sides show restraint, the damage to the global risk will remain the same,” SosoValue he saw on X.
Bitcoin price predictions: bear trap or deep flight?
According to experts, the events that are witnessing the current sharp fall may set the course for change.
Santiment has seen a surge in profit-taking in recent days, which it says points to a possible recovery amid the water shortage.
“Capitulation is one of the most important factors in the beginning of a bull run, and stocks can fall during both falling prices (due to fear of losing more) or rising prices (expecting that prices will not rise),” the company wrote.
Meanwhile, former market analyst John Bollinger recently announced that Bitcoin’s strategy is positive. BTC has moved out of the upper Bollinger Bands, but the BBTrend indicator remains stable.
This shows that a temporary squeeze can occur if prices have support levels.
Bulls will also need to boost energy efficiency, helped in large part by a slight increase in Gulf, oil prices, and the CLARITY Act.
Maximum rejection rates can be around $85,000-$90,000. However, if the bullish trend continues, the bears may be eyeing a deeper correction towards the $60,000 support area.
Bitcoin hovered around $79,615 on Friday morning.
