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Bitcoin breaks $8,000 support; is the US-Iran magic over?

  • Bitcoin retraces steps below $8,000 as the stock markets stabilize in the United States.
  • Bitcoin could revisit $7,000 before a significant recovery is forged towards $9,000.

Bitcoin is back to trading below $8,000 barely a day after it ascended to highs above $8,400. The surge to highs not traded since last November had investors and bull traders believe that Bitcoin’s return above $9,000 was night.

However, it appears that the impact of the tension resulting from the near-war scenario between the US and Iran is dying down. Besides, the stock market in the US appears to have reversed the momentum with the S&P 500 gaining 0.498% and Nasdaq 0.67%. Investors who were seeking refuge in Bitcoin and other assets like gold and oil seem to be retreating back to the stock market.

Meanwhile, Bitcoin is trading 0.9% lower on the day after opening the session at $8,045. High volatility coupled with a depilated technical picture suggests that Bitcoin could plunge lower. Among the support areas likely to come in handy include $7,800, $7,400 and $7,000.

BTC/USD 4-hour chart

Author

John Isige

John Isige

FXStreet

John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren

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