The Bitcoin (BTC) price has tumbled below $65,000 as rising geopolitical tensions came into focus once again as the Middle East stands on the precipice of a broader conflict after Iran reportedly ordered retaliatory attacks against Israel. As a result, spooked investors turned bearish, sending prices crashing.
Before the drop, Bitcoin bulls were eying the $70,000 level, but sellers fiercely defended the upper levels of BTC’s trading range. Analysts were closely watching the $69,000 level, believing it to be crucial for the bulls to flip it into support for the asset to push on above $70,000 and $72,000.
Bitcoin (BTC) Sees Significant Drop Amid Middle East Tensions
Bitcoin failed to recover as it lost the $65,000 level on Wednesday when it dropped to $64,671, as tensions flared in the Middle East, drawing investor attention after the conclusion of the July Federal Reserve meeting. Other major altcoins, including Ethereum (ETH), Solana (SOL), Cardano (ADA), Avalanche (AVAX), and several others, also registered notable declines. The primary reason behind the selloff was reports that Iran’s leadership had ordered retaliatory airstrikes on Israel, raising the specter of broader conflict in the Middle East.
Earlier in the day, the Federal Reserve left benchmark interest rates unchanged and gave few indications that an expected rate cut in September is guaranteed. Fed Chair Jerome Powell stated that no decisions had been made regarding a rate cut; the broad sense is that we are moving closer to reducing rates.
“If we were to see inflation moving down … more or less in line with expectations, growth remains reasonably strong, and the labor market remains consistent with current conditions, then I think a rate cut could be on the table at the September meeting.”
While digital assets registered considerable losses, their traditional counterparts saw gains over the course of the day. The 10-year US bond yield also dropped by ten basis points, while gold registered a 1.5% increase, rising to $2,450, just below its record high, while WTI crude oil prices surged by 5%. Equities also registered significant gains over the day, led by NVidia’s 12% gains.
BTC Needs A Trigger
Bitcoin (BTC) needs a strong trigger to push it out of its current trading range, one it has been in for the past five months. Analysts are confident that once it does so, the cryptocurrency will cross $100,000 by the end of the year. However, another subset of analysts believe that the asset will hit $100,000 only in 2025, believing that the $35 trillion US national debt will be crucial in driving greater BTC adoption.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) is facing significant selling pressure due to the flare-up of Middle East tensions. The Federal Reserve’s decision to leave its interest rate of 5.25-5.50% unchanged also factored in, but this was along expected lines, with BTC recording a 2% drop to resume its correction. Analysts had expected BTC to rebound from the $65,000 support level. However, bears were able to breach this level, sending BTC tumbling to $64,671. In fact, BTC has been in the red since Monday, when the price faced a strong rejection from the $70,000 mark.
Source: TradingView
BTC began Monday with a surge toward $70,000. However, the price turned bearish almost immediately after reaching that level, as sellers forced the price down. Sellers eventually overwhelmed buyers, with BTC dropping by 2.12% and ending the day at $66,810. Bearish pressure continued on Tuesday as BTC dipped by 0.83% to settle at $66,252. Wednesday began with analysts expecting a rebound from the $65,000 level, with the 20-day SMA also sloping upwards. However, bears could overwhelm this level, as BTC dropped below $65,000 and the 20-day SMA to settle at $64,671. The current session sees BTC remain in the red, with sellers pushing the price to a low of $63,578. However, BTC has been able to rebound from this level and is currently trading at $64,305.
If BTC rebounds from its current levels, we could see the price reclaim $65,000 and attempt another push toward $70,000. However, if the price faces another drop, it indicates that traders are booking profits at higher levels.
Ethereum (ETH) Price Analysis
Ethereum (ETH) has registered an 8% decline during the past month as its price continues to dip, with bears eying the $3,000 mark. ETH started the week on a bullish note, as buying activity picked up, helping ETH surge past the 20 and 50-day SMAs, targeting $3,500. However, ETH faced rejection at $3,400, as the price tumbled back below the 20 and 50-day SMAs and settled at $3,319, an increase of just 1.19%. ETH faced significant selling pressure on Tuesday, dropping to a day low of $3,195 as buyers exerted control. Despite the strong bearish sentiment, ETH recovered to a certain extent and settled at $3,280, dropping by 1.17%.
Buyers attempted to push ETH above $3,400 on Wednesday but were unsuccessful once again as sellers took control and pushed the price down to $3,200. The current session sees ETH down by almost 2%, losing the crucial $3,200 level. If selling pressure continues, ETH could drop to $3,000 or its longstanding support level of $2,850. But what will it take for ETH to return to the heady highs of $4,000, a level it was trading at in March?
Source: TradingView
While the crypto markets have been underwhelming in recent months, ETH has its own problems. The initial hype around spot Ethereum ETFs has died down, with the investment vehicles witnessing significant outflows, dampening sentiment. The Ethereum network’s TVL has also remained stagnant and currently stands at around 17.8 million ETH, almost unchanged from the past two months. For ETH to reclaim $4,000, it must attract interest from institutional investors. Increased institutional interest will reflect an increase in spot ETH ETF inflows or at least a reduction in outflows.
Solana (SOL) Price Analysis
With the larger cryptocurrency markets recording a fourth consecutive day, Solana (SOL) continued to drop, slipping below the crucial $170 level. SOL, which was incredibly bullish coming into the week, failed to hold on to its bullishness, with the losses during the week erasing all gains made during the previous week. SOL’s bearish trajectory has led to the asset dropping over 8% during the past 24 hours. Let’s look at its price chart.
SOL ended Sunday at $185 and began Monday on a highly bullish note, surging toward $200. SOL reached a high of $194 but could not push any higher after facing intense selling pressure. As a result, SOL fell back considerably and settled at $182.65, a drop of 1.30%. Bearish sentiment continued on Tuesday as well, with SOL dropping by almost 2% to $179.25. Buyers attempted a recovery on Wednesday, as SOL rose to $184, but could not sustain momentum. As a result, SOL fell back, dropping by 4.18% and settling at $171. The current session sees SOL down by almost 2%, having lost the $170 level, with the price currently trading at $168.66.
Source: TradingView
If SOL recovers from its current level, buyers could attempt to reclaim the $170 level. However, if selling pressure continues, SOL could drop to $150.
Cardano (ADA) Price Analysis
Cardano (ADA) has been on a downward trajectory since its price hit $0.451 on July 22. Since then, bearish sentiment has taken over, and by July 25, ADA lost the $0.40 level, dropping to $0.395. ADA made a strong recovery following this drop, surging by almost 6% on Friday and settling at $0.418. However, bearish sentiment took over during the weekend, and ADA tumbled, closing at $0.403 on Monday. ADA continued to drop on Tuesday and Wednesday, losing the $0.40 support level once again, with sellers dragging the price to a low of $0.387 on Wednesday. The current session sees ADA down by 0.77%, with the price firmly rooted in bearish territory.
Source: TradingView
If current conditions persist, ADA will see further declines. If sellers continue to dominate the markets, ADA could drop to $0.35 or further to $0.30, which would be a yearly low for the asset. However, analysts remain optimistic and have urged traders to buy the dip, expecting the asset to recover strongly from current levels.
Ripple (XRP) Price Analysis
Ripple (XRP) has defied market expectations to a certain extent, registering a significant increase during the beginning of the week despite bearish sentiment prevailing in the markets after witnessing a few days of sideways movement, where the price consolidated around the $0.60 mark, ending the weekend up by 1.01%. After facing significant volatility on Monday, XRP rose sharply on Tuesday, rising by 4.27% and settling at $0.62.
Source: TradingView
XRP began Wednesday with a significant surge, as buyers pushed the price above $0.65. However, with sellers active at higher levels, XRP fell back, eventually settling at $0.623 after a drop of 0.72%. The current session sees XRP down by 2.37%, with sellers in control. Despite the selling pressure, XRP has remained above $0.60, having recovered from a day low of $0.596.
Toncoin (TON) Price Analysis
Toncoin (TON) has seen a slight uptick during the week as buyers prevented the price from falling below $6.60. TON ended the weekend at $6.63, after which buyers strongly pushed the price towards $7. However, sellers were able to defend this level, and TON fell back, eventually registering a marginal decline and settling at $6.63. TON recovered on Tuesday, rising by 1.82% and pushing to $6.75. A marginal increase on Wednesday saw TON rise to $6.77. The current session saw sellers attempt to push TON down towards $6.50. However, buyers were able to withstand the selling pressure, allowing TON to recover. TON is currently trading at $6.81, up by 0.57%.
Source: TradingView
If TON can remain bullish, it could attempt to test $7 and move above the 20-day SMA. Such a scenario would set it up for a move towards $7.50. However, should sentiment turn bearish, TON could drop back to $6.50.
PEPE Price Analysis
PEPE has seen a dramatic plunge this week, with its price slipping below the 20- and 50-day SMAs and the meme token is facing intense selling pressure. After rising to $0.0000121 on Saturday, PEPE turned bearish, dropping to $0.0000117 on Sunday. The price registered a marginal increase on Monday but fell back in the red on Tuesday, dropping by over 5% to $0.0000112. Buyers attempted a brief rally on Wednesday but lost momentum, allowing sellers to retake control and push the price below the 20 and 50-day SMAs to $0.0000110. The current session saw PEPE down by almost 5% as sellers looked to drive the price below $0.00001.
Source: TradingView
Should sellers breach this level, PEPE could significantly drop to the 200-day SMA at $0.0000080. However, if the price rebounds, it could start a relief rally that could push the price back up toward $0.000015.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
