The Bitcoin Price Holds Above $60k

The escalation in the Middle East has led to a drop in some high-risk financial assets, including Bitcoin. According to the BTC/USD chart, Bitcoin's price is currently just above $60k, though less than a week ago, the bulls were pushing towards $66k.

Sentiment has also been dampened by the US Securities and Exchange Commission’s (SEC) decision to appeal a July 2023 ruling that XRP does not meet the legal definition of a security (XRP/USD fell by around 10% in a day).

Investor caution is further evident in the data showing capital outflows from Bitcoin ETF funds.

Technical analysis of the BTC/USD chart today indicates that, from a long-term perspective, BTC/USD is moving within an ascending channel, shown in blue (as mentioned in our previous Bitcoin price analysis on 23 September), with the following key points:

→ Everything that has happened to the price since March can be viewed as a correction (shown by the red channel) within a bullish trend, forming a bullish flag pattern.

→ The bearish reversal at the start of this month (marked with an arrow) highlights the significance of resistance from the upper boundary of the red channel.

At Bitcoin’s current price level, its proximity to the lower boundary of the blue channel is crucial. A bearish acceleration here would be a worrying signal, suggesting a potential break of the long-standing upward trend that has been in place for several months.