Bitcoin continues to rally as war threat recedes

Bitcoin continues to rally as war threat recedes

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The Israeli retaliation against Iran now done and dusted, and the Iranians having declared it not worth answering, bitcoin and the crypto market are continuing to rally. As the threat of war recedes, bitcoin heads towards the top of its bull flag and a potential breakout to new all-time highs.

Strikes to save face now over?

It seems that the Israeli Defence Force (IDF) did just enough last Friday in its limited strike against Iranian targets in order to save face and enable Natanyahu to weather the storm of those in the Israeli parliament who were calling for far more drastic measures.

It was in the knowledge that the US was not going to get involved that the IDF launched its limited attacks. In turn, this gave Iran the pretext to not have to further escalate the situation. Iranian foreign minister, Hossein Amirabdollahian, said of the weapons used in the Israeli strike in an interview on NBC News “They were more like toys that our children play with,”

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Markets set to rally

Therefore, with war becoming a far less likely outcome, at least between Israel and Iran, the crypto market saw fit to rally strongly over the weekend. When traditional markets open later on Monday, it might also be expected that they go higher, giving a further boost to crypto. With gold and silver down quite heavily, this would also point to a stock market rally.

Bitcoin bull flag continues to play out

Source: Coingecko/TradingView

Bitcoin’s bull flag is still playing out. After confirming the bottom of the pattern when potential war was very much on the cards, bitcoin has since risen, and on Monday there is the possibility that the $66,000 level is flipped into support should the rally continue.

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If this price level does become a confirmed support, it might be expected that the price would then rise to the top of the bull flag, which at that point could be at around $71,500. 

Bitcoin ETFs could buy most or all of new daily supply

The halving has taken place. The daily issuance of bitcoin is now 450 $BTC. Just the Blackrock ETF (IBIT) alone has bought this on several occasions. The Grayscale ETF (GBTC) has halved its bitcoin holdings as it has sold heavily over the last couple of months. Therefore, the selling from this ETF must soon dry up.

Bitcoin up – fiat currencies down

If past bull markets for Bitcoin are a guide, the price should generally go up from here. Of course, there will be corrections along the way, but holding $BTC for at least the next year could be a solid strategy.

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With fiat currencies losing their value hand over fist, and with this probably increasing into the future, as governments and their central banks attempt to keep the whole system afloat, keeping money in the bank is a sure way to losing purchasing power. Bitcoin is the liferaft – there is still time to get aboard.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. 

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