- Bitcoin price has formed a bearish flag pattern on the three-day chart.
- The failed US and Iranian talks pose a major risk this week.
- Donald Trump and Iran may resume their attacks against Iran.
Bitcoin price retreated slightly on Sunday as market participants came to terms to the latest developments in Pakistan, where talks between the US and Iran failed to yield any positive outcome. BTC token was trading at $71,620, down slightly from the weekend high of $73,720.
Bitcoin Price Could be at Risk as US-Iran Talks End
Tensions between the US and Iran could escalate in the coming days after the latest talks in Pakistan ended without a deal.
This outcome was easy to predict as the gap between the US and Iran has been wide, with both sides making maximalist demands.
The US has requested Iran to reopen the Strait of Hormuz, hand over its enriched uranium, stop finding its proxies, and to recognize Israel’s right to exist. It has also pushed Iran to limit its ballistic missile program.
On the other hand, Iran has demanded that the US shut its military bases in the region, an end to the ongoing fighting in Lebanon, and the right to administer the Strait of Hormuz. In a statement, Tasnim News Agency said:
“The Americans intended to achieve concessions in the negotiation room that they could not obtain during the war, including issues related to the Strait of Hormuz and the removal of nuclear materials from the country, but the Iranian delegation prevented this.”
Therefore, the most likely scenario is where the ceasefire breaks as Israel wants. That will lead to a more intense bombing campaign, which will push crude oil and natural gas prices higher in the near term.
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As a result, US consumer inflation will likely continue rising this year. A report released on Friday showed that the headline Consumer Price Index (CPI) rose 3.3% in March as the core figure rose to 2.7%.
Soaring inflation will likely make it hard for the Federal Reserve to cut interest rates even when Kevin Warsh becomes the Fed Chair. OECD analysts believe that the US inflation will jump to 4.2% this year if crude oil remains above $95.
BTC Price Technical Analysis
The three-day chart shows that the Bitcoin price may be at risk of a strong bearish breakout. It has been forming a bearish flag pattern since January this year when it emerged from a similar pattern. In most cases, this pattern normally leads to more downside.
Bitcoin has also remained below the Ichimoku Cloud indicator and the 50-day and 100-day moving averages. That is a sign that bears remain in control today.
Therefore, the path of the least resistance for the coin is bearish, with the initial target being the lower side of the ascending channel at $67,000. A drop below that price will point to further downside, potentially to the year-to-date low of $60,400.
READ MORE: Zcash, Dash, Monero Prices Jump as Iran Considers Crypto for Strait of Hormuz Tolls
