Story by: Yashu Gola
Bitcoin staged a sharp price rally this Tuesday as speculators continued to assess the likelihood of a full-blown military conflict between the US and Iran.
The benchmark cryptocurrency established a seven-week high of $8,000 on Coinbase, its best level in seven-weeks. The move upside brought its weekly gains up by 10.27 percent. The bitcoin futures trade, too, noted moves towards $8,100 after the price rally in the spot market.
Bitcoin’s gains coincided with similar upside movements across the traditional haven assets. Precious metal Gold yesterday hit its best levels since April 2013. At the same time, global benchmark Brent Crude Oil surged to reclaim its eight-month top albeit correcting downwards during the daily sessions since Monday.
But that does not concern bitcoin one bit, at least according to Peter Schiff. The Euro Pacific Capital CEO highlighted the cryptocurrency as an offbeat asset driven largely by speculation, noting that no institutional investor is buying it as a safeguard against the US-Iran conflict.
“Retail investors in GBTC are more bullish on Bitcoin than actual Bitcoin buyers,” tweeted Mr. Schiff. “It’s a good contrarian indicator that Bitcoin prices are likely to fall.”
Bitcoin Technicals are Bearish
While bitcoin’s latest price rally certain pushes it above crucial resistance levels, the cryptocurrency is still trending inside a very bearish channel, as shown in the chart below.
That being said, optimists could enter a fresh long position towards $8,369-$8,500 range. At the same time, they could maintain their risks by placing a stop-loss order below the level at which they have opened the long position.
Meanwhile, a pullback accompanied by a volume boom could have traders open a short position towards $7,280 for a decent profit. A break below the said level could extend the downside target towards $6,500.by