Iran has required all ships passing through the Strait of Hormuz to pay transit fees in bitcoin, a move that could significantly boost demand. Meanwhile, the daily chart shows that Bitcoin price has been making a steady recovery for nearly two weeks, forming a bullish pattern with a target price of $86,000.
Iran imposes oil transit fees in Bitcoin
According to A Report by the Financial TimesIran is demanding that shipping companies pay tolls in cryptocurrencies to allow them to pass through the Strait of Hormuz. The spokesman for the Iran Oil, Gas and Petrochemical Products Exporters Association, Hamid Hosseini, specifically stated that Bitcoin is the approved method of payment.
According to Al-Husseini, shipping companies must pay $1 per barrel of oil, or $2 million per ship. If every payment is made in Bitcoin, it will increase the demand for Bitcoin, causing the price to increase.
Per Hosseini, “Once the email arrives and Iran completes its assessment, the ships are given a few seconds to pay in Bitcoin, ensuring they cannot be traced or seized due to sanctions.”
According to Crypto commentator Lark Davis, 20 million barrels of oil pass through the Strait of Hormuz every day. This means that $2 million worth of Bitcoin could be used in the strait daily. Davis points out that this is equivalent to 270 times the daily purchase price of 1 Bitcoin in El Salvador.
The war between the United States and Iran has caused Bitcoin prices to fluctuate. after President Trump announced a two-week ceasefireBitcoin rose, and is still holding on to those gains. At press time, Bitcoin was trading at $70,849, with gains of more than 4% on the day.
BTC price targets $86K if the bullish pattern continues
The daily chart shows that since March 30, Bitcoin price has made a steady recovery. Since then, it has risen from $66,797 to over $70,000 as buying momentum resumes due to easing geopolitical tensions.
This rebound has created a rounded bottom pattern that will mature if BTC tests the resistance at $74,884. If it breaks through this resistance level and flips to support, the next upside wave could lead to a rise of more than 15% to $86,133, supporting the uptrend. Bitcoin price forecast long term.
An RSI reading of 55 confirms that a sustained recovery may continue as momentum remains bullish. However, the slight trend south shows that some buyers who bought during the rally may be selling to take profits.
On the other hand, the Average Directional Index (ADX) line paints a bleak picture of Bitcoin’s performance. Shifting south, the ADX shows that the uptrend that started on March 30 is not as strong. Hence, a bearish reversal may occur, resulting in BTC price failing to break through the $74,884 resistance level.
