- Bitcoin and other altcoins have remained in a bear market this week.
- The US-Iran war has taken a new twist, with Houthis launching missiles.
- The US is considering a ground invasion in Iran.
Bitcoin and top altcoins like Pi Network, Dogecoin, Ethereum, and Shiba Inu prices may be at risk of more downside as the US-Iran war took a new twist on Friday evening.
Crypto Market at Risk as Houthis Enter the US-Iran War
BTC price remains below $70,000, down sharply from the all-time high of 126,200. Similarly, Pi Network price dropped to $0.1750, down sharply from the year-to-date high of $0.2970.
Similarly, Dogecoin price dropped below the key support level at $0.10, while Shiba Inu remains in a technical bear market. The market capitalization of all tokens dropped to $2.3 trillion.
The ongoing crypto market crash may be at risk of a steeper crash in the coming weeks as the Iran-US war took a new twist in two main ways. For example, the US is now seriously considering a ground invasion of Iran, possibly to some key islands like Kharg, where the country exports most of its oil.
READ MORE: SPY and VOO Stocks Eye Bear Market as Fear and Greed Index Hits 10
The Trump administration has sent thousands of troops to the region, with some of them arriving today or on Sunday. More others will arrive, possibly next week.
The other major aspect is that the Houthis have now joined the war as it launched a missile attack towards Israel for the first time since the war started in February.
The group may decide to blockade the Red Sea, where 10% of the world’s oil passes through. As such, the closure of the Strait of Hormuz and the Red Sea means that the global oil supply will come under substantial strain in the next few weeks.
Data shows that Brent crude oil price ended the week at $112, while the West Texas Intermediate (WTI) rose to $100. These two benchmarks were trading below $50 earlier this year.
Therefore, a combination of a US ground invasion, fighting in Lebanon, and now, the attacks by Houthi, will lead to higher oil prices and market volatility. It will also lead to more fear in the market, with the Crypto Fear and Greed Index remaining in the fear zone of 30.
Bitcoin Price Technicals Signal More Downside Ahead
Keep in mind that these challenges are happening at a time when the Bitcoin price has formed a large bearish flag pattern on the three-day chart. This pattern is made up of a vertical line and an ascending channel.
As the chart above shows, the coin has already moved below the lower of the rising channel, pointing to more downside in the near term.
Bitcoin price has remained below all moving averages and the Supertrend indicator, pointing to more downside, potentially to the key support level at $50,000.
If this happens, other cryptocurrencies like Shiba Inu, Dogecoin, Pi Network, and Solana will continue falling because altcoins tend to have a close correlation with each other.
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