After two weeks of pure optimism, the crypto market took a hit as tensions in the Middle East escalated. Is the fear of war already priced in, or is this just the beginning of a deeper downturn? Let’s explore the possible scenarios!
7 Days Heatmap
BTC erased all of last week’s gains, dropping by nearly 6%.
This decline extended across the entire crypto market, with ETH also falling by around 10%.
BTC Analysis
As anticipated in our last BTC chart analysis, it broke below the previous low at $64,200 and dropped sharply to retest the $60,000 level.
Since the $60,000 level is holding, this can be considered a correction phase.
For the correction phase to conclude, a break above the recent high at $62,500 is required. In the meantime, further downside remains possible.
ETH Analysis
ETH has been hovering within a large range, forming a symmetrical triangle pattern.
As mentioned in the last market outlook, along as the $2,500 level acts as resistance, further downside toward the $2,200 support and the lower orange trendline is expected.
In parallel, if the $2,500 level is broken to the upside, bullish pressure is likely to resume, pushing ETH toward the upper boundary of the triangle around $2,700.
Quote of the week
I’m always thinking about losing money as opposed to making money. Don’t focus on making money, focus on protecting what you have.
~ Paul Tudor Jones
Closing Remarks
In summary, the crypto market faced a downturn after two weeks of optimism, driven by escalating tensions in the Middle East.
BTC saw a 6% drop, while ETH fell by around 10%. BTC broke below the $64,200 low and retested $60,000, indicating a correction phase. A break above $62,500 is needed to end this phase, though further downside remains possible.
ETH is trading within a symmetrical triangle, with $2,500 acting as a resistance. A break below this level could push ETH toward $2,200, while a break above $2,500 could resume bullish momentum towards $2,700.
Looking for deeper insights? Check out our latest market analysis update.
