Bitcoin price was stuck in a narrow range in the past two months and could be at risk in the near term as Donald Trump’s ultimatum to Iran nears, and as the odds that Democrats will flip Republicans in the Senate in the upcoming elections. BTC price was trading at $67,300 on Saturday, down sharply from the all-time high of $126,300.
Donald Trump Ultimate on Iran Nears and Odds of Republicans Losing the Senate Rise
There are elevated risks that the crisis in the Middle East will escalate in the coming week as Donald Trump’s ultimatum to Iran nears.
In a statement on Saturday, Trump said that “all hell will break loose” if Iran refuses to reopen the Strait of Hormuz. Iran has vowed to retaliate by targeting similar infrastructure projects in the Middle East, including for countries like Saudi Arabia, Oman, Kuwait, and Bahrain.
Therefore, there is a likelihood that crude oil prices will continue rising in the coming weeks. The West Texas Intermediate (WTI) jumped to $112, while Brent jumped to $109. Traders on Polymarket believe that the WTI will jump to $120 this month.
READ MORE: COIN Stock on Edge as Coinbase Wins Conditional Bank Charter
The implication of all this is that gasoline prices, which moved to $4, will continue rising in the near term. Diesel has also jumped to $6, a trend that may continue rising.
As a result, analysts expect that the headline Consumer Price Index (CPI) will jump to 4.2% this year. A report released on Friday showed that the economy added over 178k jobs in March as the unemployment rate dropped to 4.3%. These numbers mean that the Federal Reserve will maintain a hawkish tone this year.
The other risk facing Bitcoin price is that Polymarket traders believe that the Democratic Party will win the Senate. Odds of this happening rose to 52%. Such a move will likely disrupt the friendly policies that the Trump administration is implementing.
Bitcoin Price Prediction: Technical Analysis
The three-day chart shows that the BTC price has come under pressure in the past few months, falling from a high of $126,300 in October to the current $67,300.
It has remained below all moving averages, while the coin has formed a bearish flag pattern. This pattern forms after an asset plunges and is then followed by an ascending channel.
Therefore, the coin will likely continue falling in the near term, potentially to the key support level at $60,000. A drop below that price will point to more downside, potentially to $50,000.
READ MORE: Cardano Price is at Risk as Midnight Mainnet Launch Fails to Ignite Rally
