The cryptography market has just been hard, going to 3.12 billions of dollars, while Bitcoin plunged below the $ 100,000 mark, marking its lowest level since early May. This recent drop came in response to the escalation of the Iran-Israel war, the United States passing between the two.
This led Iran to close the Hormuz Strait for the first time since 1972, triggering a sharp drop in the price of bitcoin.
So what is the link between the Hormuz Strait and a Crypto crash? Let’s decompose it.
Geopolitical tension strikes Bitcoin $ 100,000
The most recent reason behind the Bitcoin price krach was that the Iranian parliament approved a decision to block the Hormuz Strait – a vital passage for around 20% to 30% of the world’s oil supply, which has shook the world markets.
Although the decision has not yet been finalized, if closed, the expeditions of 20 million barrels of oil per day will be assigned and will increase the price of oil, perhaps even reach $ 100 per barrel.
An increase in oil generally leads to fears of inflation and keeps investors from risky assets such as Bitcoin.
Consequently, Bitcoin broke below the $ 100,000 mark after keeping strong for 45 days. This rupture sparked a concern through cryptographic space, in particular in traders with high -effect lever positions.
Graphic models confirm fear
According to Crypto Analyst Cryptokid, Bitcoin shows clear signs of weakness. On the BTC graphic, a “double high” model has formed, a lower signal, as well as a drop below the key support levels.
For this reason, analysts now keep an eye on the next major price areas. If Bitcoin continues to drop, the next probable support levels are about $ 97,600 and $ 93,100 on the basis of Fibonacci trace levels.
There is also an increasing concern that Bitcoin could fall to $ 91,960, where a CME deviation still exists. If this happens, this could lead to more sale of panic and liquidations on the market.
Altcoins in the danger area too
The price of bitcoin reaching hard, altcoins also see heat. Meanwhile, altcoins like Solana, Dogecoin and Avx are also on thin ice because the price has seen down 10%.
However, prices are approaching extreme low – levels not seen from the last bears market. While some see it as an opportunity to purchase, Crypto Kid advises prudence and the reduction of the lever effect during uncertain times.
