Bitcoin price is down 0.50% today, April 5, remaining within the range it has been stuck in for the past few months. This consolidation may be followed by a strong downside collapse this week as President Donald Trump’s deadline to “rescue hell” in Iran approaches.
Bitcoin price is in danger as Donald Trump’s Iran deadline approaches
BTC price may fall sharply in the coming days as geopolitical risks rise. In a statement on Saturday, US President Donald Trump threatened Iran with concluding an agreement or reopening the Strait of Hormuz Hell will rain down on the United States On the country. The ten-day period will end on Monday of this week.
This statement came a few days after he warned against returning Iran “to the Stone Age, where it deserves.” This means that the United States will continue to bomb Iranian infrastructure projects, including bridges and energy sources.
Analysts believe that these actions will lead to widespread Iranian retaliation, which will include bombing infrastructure in other countries in the region, including countries such as Kuwait, Saudi Arabia and Israel. This, in turn, will lead to higher crude oil prices.
In fact, data shows that Polymarket perpetual crude oil futures have continued to rise in the past few weeks, with… West Texas Intermediate (WTI) crude oil rose to $112 It becomes more expensive than Brent crude for the first time in years. Gasoline prices jumped to more than $4 per gallon.
The moral of all this is that investors will adopt sentiments of risk aversion, which explains why the Cryptocurrency Fear and Greed Index has fallen to the extreme fear zone of 20.
At the same time, this will lead to higher inflation among consumers and producers, as the OECD expects the headline CPI to jump to 4.2% this year.
Such a move would make it difficult for the Fed to cut interest rates, especially now that the US has published its report Robust data on non-farm payrolls on Friday, which showed the economy created 178,000 jobs with the unemployment rate falling to 4.3%.
BTC Price Forecast: Technical Analysis
The three-day chart shows that BTC price could be at risk of further decline in the near term. It slowly formed a bearish flag pattern, which started forming in January when it fell from $95,000 to the low of $60,000 in February. This decline occurred after it completed the formation of a bear flag pattern.
It has now moved into the flag section of the pattern, which could lead to a strong pullback, with the initial target at $60,000, just below the extreme oversold level of the Murrey Math Lines tool.
The bearish outlook is also supported by other technical indicators. It has fallen below all the moving averages and the Supertrend indicator, which is a sign that the bears have prevailed.
On the other hand, a bounce above the final support level of $75,000 will invalidate the bearish outlook.
