Impact of Global Factors on Traditional Financial Markets and Cryptos: BTC Price Facing Upward Pressure amid War-like Situation
The global tensions between Israel and Iran have sent shockwaves through the financial markets, impacting both traditional assets and cryptocurrencies. Major tokens are facing intense upward pressure as fear grips investors. The fear and greed index, which had reached extreme levels above 90, has now dropped to 60, signaling a shift in market sentiment.
Bitcoin, the leading cryptocurrency, has been struggling to maintain its bullish momentum after hitting yearly lows near $60,000. The price has fallen below key support levels, forming lower lows and raising concerns among traders. The crucial support level near $58,000 is now in focus, with the possibility of a further decline if bulls fail to defend it.
The breakdown of the crucial ascending trend line for Bitcoin suggests growing bearish strength in the market. Bears may push the price towards $58,000 in the coming days unless there is a strong bullish rebound. The overall bearish influence in the market has kept bulls at bay, with traditional markets also facing uncertainty due to the FED chair’s hawkish stance and retail investors’ greed for high leverage trades.
Despite recent corrections, the market remains greedy, as indicated by the positive funding rate. Unless there is a significant reset or negative funding for an extended period, the markets are likely to continue trading sideways or downwards. Investors are advised to exercise caution and closely monitor market developments in the face of ongoing global tensions and market volatility.
