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- Bitcoin (BTC), Ethereum (ETH), and XRP have made unexpected declines below crucial support levels amidst the rising tension between Israel and Iran.
- Bitcoin is expected to extend its bearish run to as low as $100k; however, a shift in sentiment could send the price to a new all-time high.
The ongoing geopolitical tension between Israel and Iran and the rising concerns of US involvement are triggering a risk-off sentiment in the crypto market, forcing the broad market valuation to fall by 1.62%.
According to market data, the general Fear and Greed Index has receded to the Neutral territory while the Altcoin Index takes multiple back-steps to reach 20/100. Per our observation, three main cryptos – Bitcoin (BTC), Ethereum (ETH), and XRP could dictate the pace of the broad market as they have been doing in previous situations.
Bitcoin (BTC) Price Analysis
Bitcoin is trading at $105k after declining by 1.6% in the last 24 hours and 3% in the last seven days from its daily peak of $106k. The current shift in sentiment is also supported by the 24-hour trading volume, which has declined by 1.4%.
According to the Relative Strength Index (RSI) chart, Bitcoin is now in the neutral zone of 50 after facing rejection at the entrance of the overbought zone on June 10. At that time, the price also declined from $110,274 to $105,671. Days after, the Moving Average Convergence Divergence (MACD) indicator showed a bearish crossover on its daily chart.
Based on the ongoing situation, Bitcoin could continue this decline to the 50-day EMA at $103,070 if the price fails to hold at the current level. The next psychological level from this point is found at the $100,000 level. However, an unexpected recovery could also see the Bitcoin price rising to $108,064 and subsequently to $111,980. As noted in our earlier post, analyst Samson Mow believes that the price could continue to hit $1 million in the long run.
Ethereum (ETH) Price Analysis
Just like Bitcoin, Ethereum (ETH) has lost 2% of its daily value and 8% of its weekly value to trade at $2,524. Supporting this trend, the asset’s 24-hour trading volume has recorded a 13% decline with $22 billion changing hands.
On the RSI chart, ETH has plunged below the neutral territory at 50 as the current market trend threatens with an extended bearish sentiment. On the daily chart last week, the MACD indicator showed a bearish crossover leading to the current downtrend. A continued decline from this level could see ETH falling to $2,461.
A decisive rebound from this level could also see the price rise back to $2,724. As mentioned in our previous news brief, ETH could likely replicate a 2017 move to stage a 26,000% rally during the bull cycle. Meanwhile, Standard Chartered analysts recently revised their price target for ETH from $10k to $4k as outlined in our recent blog post.
XRP Price Analysis
XRP has plunged below a crucial support level at $2.2 to trade at $2.1 after falling by 3% in the last 24 hours and 5.9% in the last seven days. Data also shows that the 24-hour trading volume is considerably down by 37%. The RSI charts confirm a huge decline in sentiment below the neutral level to 44.
According to analysts, this shows a strong bearish momentum. A continuous fall from this level could see the asset reach the $1.96 psychological level. A successful bounce back could also see XRP re-entering the $2.2 level.
As indicated in our earlier discussion, analyst Mikybull Crypto expects the asset to mirror a 2017 move to hit $14. Another prediction by research firm Sistine Research fixes XRP’s long-term target at $73, as explained in our last analysis.
