Iran attacked US bases in Iraq this morning with more than a dozen missiles, retaliating for the assassination of Qasem Soleimani. The Iran’s attack has caused a new level of turmoil and all the recent geopolitical tensions have caused safe havens like gold and oil to rise. Including Bitcoin, which saw a climb of 4.80% in the last 24 hours, whilst now Bitcoin Price targets $9000 according to analysts.
08 January, 2020 | AtoZ Markets – Safe havens have always played a key role in times of geopolitical tensions. Despite, Bitcoin is not considered as an official safe haven asset, many investors do give Bitcoin a safe haven asset status. Currently, bitcoin is trading at $8,389, at the time of press.
Last week, President Donald Trump attacked Iran and killed their military general Qasem Soleimani. Iran called for revenge against the United States for the murder of the military general and responded that they would respond accordingly. This led to today’s retaliation, since Iran attacked US bases in Iraq this morning. These geopolitical tensions reached a new height with today’s action of Iran and it has reflected in the rise of gold, oil and Bitcoin. Now the question for many traders is: how high will Bitcoin rise amid the heightened tensions?
Bitcoin Hits New 2020 High Above $8,450
In the past few hours, the BTC has surged to reach a seven-week high of $8,450. This movement marked a gain of almost 10% since its intraday low of $ 7,716 yesterday. Since the momentum began last Friday following the US airstrike in the Middle East, bitcoin has gained an impressive 22%. Although, this rally is not yet as big as the China induced pump in late October, it has all the potential to be.
According to AtoZ Markets’ senior market analyst and Bloomberg Intelligence, Bitcoin price could surpass the $9000 level and even retest the $13,900 level. Which is the 2019 high of Bitcoin. Continue here for the full 2020 Bitcoin analysis by our analysts.
Iran Attacks US Bases in Iraq
Retaliation from Iran in the early hours of Wednesday morning triggered the rise of Bitcoin. According to reports, more than a dozen missiles have been fired at two Iraqi bases known to American military personnel. The Islamic Revolutionary Guard Corps (IRGC) has called this attack an act of revenge for the death of their military general, Qasem Soleimani.
President Donald Trump seems to be delighted with the conflict and the possibility of an all-out war. He tweeted that “All is well” and “So far, so good!’ after the attack.
All is well! Missiles launched from Iran at two military bases located in Iraq. Assessment of casualties & damages taking place now. So far, so good! We have the most powerful and well equipped military anywhere in the world, by far! I will be making a statement tomorrow morning.— Donald J. Trump (@realDonaldTrump) January 8, 2020
Escalating tensions have renewed the safe-haven asset narrative for bitcoin just as Trump’s trade war with China did last year. Since new capital is pouring into the assets, Bitcoin saw a break above the six-week range bound and is ready to tap new highs for the year.
The Next Move for Bitcoin
Now that the long-term technical indicators are bullish and the trend lines have been broken, analysts are eyeing to the next move for bitcoins. Today during the Asian trading session, BTCUSD has crossed the line of 8450. The price of Bitcoin could target $9000 next.
For the moment, the BTCUSD remains above the moving average of 50 (red line) and 200 (dark blue line). It is a signal of Bitcoin’s uptrend. The spectre of war combined with a Bitcoin halving could make 2020 the mother of all rallies.
Do you think that Bitcoin bullish momentum can sustain and hit the 2017 levels again? Share with us your predictions in the comments section below.