Bitcoin price could be on the verge of a strong bearish breakout as top Republicans continue making the case for a US attack and regime change in Iran. BTC was trading at $67,400 on Sunday as it continued forming the risky bearish pennant pattern.
Top Republicans Urge Trump to Strike Iran
Bitcoin price has remained under pressure in the past few months, and the sell-off may continue in the near term. Media reports and social media posts suggest that top Republicans are urging President Donald Trump to attack Iran.
According to Axios, Senator Lindsey Graham, a close friend of Trump, continues to press for an attack even as some people close to Trump urge him to give talks a chance. He has also pressed for the killing of Ayatollah Khamenei.
Other senior Republicans like Senator Ted Cruz and Tom Cotton have also called for an attack. Most importantly, Fox News and NewsMax, which Trump watches religiously, have continued to beat the drums of war. Some of the loudest voices are Sean Hannity, Mark Levin, and General Keane.
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Therefore, there is a likelihood that Trump will ultimately attack Iran in the coming days or weeks. In a statement on Friday, Trump said that he was considering a limited attack to put more pressure on Iran.
The risk, however, is that Iran has warned that it will respond to any attack violently. It will initially shut the Strait of Hormuz, pushing crude oil prices. Iran has also threatened to bomb Israel and American bases in the region.
A new war in the Middle East would be risky for Bitcoin price for several reasons. First, it would lead to higher inflation, making it hard for the Federal Reserve to cut interest rates.
Second, it would raise the possibility of Republicans losing the midterms. Such a move means that no crypto-friendly regulation will pass in Congress in the next few years.
Third, Bitcoin has proven that it is not a safe-haven asset. Indeed, Bitcoin price has crashed into a bear market, while spot ETFs have shed billions of dollars in assets as risks have soared.
Bitcoin Price Prediction: Technical Analysis
The daily chart shows that the BTC price has plunged in the past few months. It formed a death cross in November last year as the 50-day and 200-day moving averages crossed each other.
Bitcoin has remained below these moving averages since then. Also, it has slumped below the Ichimoku cloud and the Supertrend indicator.
The coin has now formed a bearish pennant pattern, which is made up of a vertical line and a symmetrical triangle. Therefore, the most likely Bitcoin price forecast is bearish, with the initial target being the psychological point at $65,000. A drop below that level will point to more downside, potentially to $60,000.
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