US-Iran Conflict Sparks Market Pullbacks: Bitcoin Seeks Key Support Levels
US-Iran tensions escalated overnight and this morning after a sudden US strike in the Strait of Hormuz, prompting Iran's retaliation. The conflict has led to significant pullbacks in both crypto and stock markets. Market analysts suggest that the current crisis may have limited duration, with economic sanctions remaining the primary means for pressuring Iran.
The upcoming week will focus on several key events: the US Non-Farm Payrolls report, the G20 Finance Ministers and Central Bank Governors’ Meeting, and the Federal Reserve's Beige Book release. The August employment report is crucial as it precedes the Federal Reserve interest rate meeting on September 16th.
Bitcoin had already weakened before Monday's market opening. Analysts are now questioning at what level the price needs to break before an accelerated downward correction occurs.
On the 4-hour chart, Bitcoin has formed a multi-top M pattern in the $77,000-$82,000 range. The first key support level lies near $77,000, marking last Friday's low and the lower edge of the weekend consolidation range. If significant volume breaks below this level, it could lead to a price drop towards $75,000.
The second key level is also $75,000, where long positions worth $919 million on major CEX exchanges are exposed to liquidation. A large-scale liquidation could trigger a vicious cycle: price drops leading to forced selling and further pushing the price down.