Geopolitical tensions that emerged in the Middle East following Iran’s missile and drone attack on Israel sent cryptocurrencies into a tailspin over the weekend. Economist Peter Schiffwhich is a cryptocurrency bear, signaled the possibility of worsening sell-offs on Sunday.
What happened: “$60,000 represents critical support for Bitcoin Bitcoin/USD“Schiff said in a post on X, formerly Twitter. A decisive break below the level will likely complete a “formidable triple top,” he said.
A triple top is a bearish technical pattern in which a stock’s price forms three peaks at nearly the same level, which act as a resistance level. After the third peak, if the stock falls back below the low formed between the peaks, this could mark the start of the downtrend.
Schiff said: “The immediate downside projection is a move to $20,000.”
He also noted that if the level is touched, Michael Saylor’s MicroStrategy, Inc. MSTR will be left with an unrealized margin of $2.7 billion on the 21,400 Bitcoin acquired at an average price of $34,000.
Because it is important: Geopolitical and macroeconomic challenges are bad for risky assets like cryptocurrencies and stocks. The echo of the crisis in the Middle East was felt first and foremost in the cryptocurrency market, given that it is a market open 24 hours a day, 7 days a week.
While Iran said the attack was a response to Israel’s attack on its consulate in Syria on April 1 and that the matter can now be considered “concluded,” Israel’s war cabinet is debating whether or not to retaliate. .
Israeli stocks reacted calmly to the latest developments. Tea on Sunday Index TA-125, The benchmark index of the Tel Aviv Stock Exchange recorded some volatility in the morning. After the sharp drop in the middle of the session, it recovered to close modestly higher.
Bitcoin fell towards $60,000 on Saturday before paring losses. According to data from Benzinga Pro, at last check, the Apex cryptocurrency was trading at $64,118.40, down 4.30%.
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