Bitcoin remains under pressure as escalating US-Iran tensions keep weighing on risk sentiment

<p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">FUNDAMENTAL OVERVIEW</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;"> </p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">Bitcoin hasn’t been immune to the deteriorating macro picture in the past few days amid increasing Fed rate hike bets and worsening geopolitical developments. </p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">The negative sentiment was triggered by Trump pouring cold water on expectations of an earlier end to the Iran war when he repeated that the US would make a deal with Tehran after the November elections. </p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">Heading into the weekend though, the hopes for a US-Iran deal returned after Iran sent a proposal to reopen the Strait of Hormuz within seven days on certain conditions.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">Unfortunately, <a href="https://www.wsj.com/world/middle-east/trump-rejects-iran-ceasefire-expects-renewed-bombing-after-midterms-5982ee50" rel="follow" style="color: rgba(70, 120, 134, 1); text-decoration: underline;">Trump rejected the proposal on Saturday and told reporters that he expected to resume bombing Iran after the midterms</a>. That has weighed on the crypto market and dragged bitcoin lower again.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">With the lack of bitcoin-specific catalysts on the horizon, the focus will remain on the Middle East and the Fed. A breakthrough would be positive for bitcoin as the aggressive rate hike bets will likely get pared back. A prolonged stalemate or even a re-escalation, on the other hand, will likely continue to weigh on the cryptocurrency.</p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: normal; font-size: 15px;"> </p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">BITCOIN TECHNICAL ANALYSIS – DAILY TIMEFRAME</p><p></p><p>On the daily chart, we can see that <a href="https://www.tradingview.com/symbols/BITCOIN/" rel="follow" style="color: rgba(70, 120, 134, 1); text-decoration: underline;">Bitcoin</a>is consolidating around the broken resistance-turned-support zone around the 82,500 level. From a risk management perspective, the buyers will have a better risk to reward setup around the upward trendline to keep pushing into new highs, while the sellers will want to see the price breaking lower to extend the drop into the 76,000 support next.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">BITCOIN TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME</p><p></p><p>On the 4 hour chart, we can see more clearly the consolidation between the 82,500 support and the 85,000 resistance. The buyers will continue to step in around the support, with a defined risk below it, to keep targeting a rally into the 90,000 level. The sellers, on the other hand, will look for a break lower to extend the pullback into the major trendline.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">BITCOIN TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME</p><p></p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">On the 1 hour chart, there’s not much we can add here as the market participants will likely continue to play the range by buying at support and selling at resistance until we get a breakout on either side.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">UPCOMING CATALYSTS</p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 103%; font-size: 15px;"><a href="https://investinglive.com/EconomicCalendar" rel="follow">Tomorrow</a>, we get the US Consumer Confidence report and the US Job Openings data. On Wednesday, we have the US ADP and the US PCE price index. On Thursday, we get the US ISM Manufacturing PMI and the latest US Jobless Claims figures. On Friday, we conclude the week with the US NFP report.</p> This article was written by Giuseppe Dellamotta at investinglive.com.