US-Iran Conflict Sparks Fears of Accelerated Downward Correction in Bitcoin

Tensions between the US and Iran escalated on August 31 as the US launched a surprise strike in the Strait of Hormuz, prompting Iran to retaliate. The conflict sparked significant pullbacks in both crypto and stock markets.

Market analysts point out that the current conflict may have limited duration, with the US likely continuing to use economic sanctions against Iran. This week's market focus will be on the US Non-Farm Payrolls report, the G20 Finance Ministers and Central Bank Governors' Meeting, and the Federal Reserve's Beige Book release.

Bitcoin has formed a multi-top M pattern in the 77,000 to 82,000 USD range, with resistance above and several key support levels below. The first defense line is near 77,000 USD, last Friday's low and the lower edge of the weekend consolidation range.

If Bitcoin breaks below this level, it will likely move quickly to test 75,000 USD. Breaking through this level would expose long positions worth 919 million USD to liquidation, triggering a vicious cycle of price drops leading to forced selling.

The dividing line for the medium-term trend lies at 72,000-73,000 USD, which is both the Fibonacci 0.382 retracement and the bottom of the price structure over the last three months.