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▲ Bitcoin (BTC)/AI generated image
Bitcoin (BTC) is locked in a fierce battle around the $70,000 mark amidst the geopolitical crisis in the Middle East. The record movement of funds into cash-like assets is paradoxically interpreted as a signal that the market is nearing its bottom.
Cryptocurrency analyst Lark Davis explained in a video released on his YouTube channel on April 9 (local time) that truce negotiations between U.S. President Donald Trump and Iran are facing difficulties. The threat of a Strait of Hormuz blockade is increasing uncertainty in both virtual assets and traditional financial markets. Upward pressure on oil prices stimulates investors' risk-averse sentiment. The progress of negotiations between President Trump and Iran is a key variable for the market's direction.
Bitcoin is currently retesting the 50-day exponential moving average in the middle of its price channel. Davis established a long position for Bitcoin at the $71,070 level. He cited $70,000 as a crucial psychological last line of defense that must be held. If it successfully holds support, a rally towards $77,000 is possible. Conversely, if the support breaks, there is a risk of a sharp drop to $56,000.
Ethereum (ETH) and Zcash (ZEC) are also moving near major resistance levels. Ethereum needs to settle above $2,300 based on the daily close to gain upward momentum towards $2,800. Zcash recently saw a surge in trading volume due to support from a famous investor. Whether it breaks through the key resistance level of $320 is crucial for a price breakout. If the market downturn continues, Ethereum could be pushed down to the $2,000 level.
Inflows into money market funds have reached an all-time high. This is an indicator reflecting market fear. Past statistics show that such a shift to cash typically occurs just before the market bottoms out and rebounds. A signal where the S&P 500 index simultaneously broke above its 50-day and 200-day moving averages was also detected. In past cases, this signal also implied a correction due to short-term overheating.
Meta successfully achieved a technical rebound by unveiling its new AI model, Muse Spark. Tesla, on the other hand, showed weakness due to continued large-scale selling. Participants in the virtual asset market are closely watching the results of geopolitical negotiations and economic data releases. Whether Bitcoin and Ethereum hold their key support levels is expected to determine their short-term direction.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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