Why Iran’s Current Situation Could Be Having an Impact on Bitcoin

The situation that’s been occurring in Iran the past week has got some crypto enthusiasts concerned about the future of the industry. Going off from an article we did at the start of the week titled ‘The Geopolitical Impact On Bitcoin From The US-Iran Situation’, discussing the unlikely nature of the US-Iran situation having a direct (or even indirect) impact on the leading cryptocurrency, the argument has been made by some that the assassination of the Iranian General, Qassem Soleimani has, in fact, had an impact on Bitcoin.

Bullish movement

Since January 3rd, when the US President authorised a drone strike on Soleimani, Bitcoin has seen some ferocious gains with yesterday being the best day for the cryptocurrency in a long time. Bitcoin finally surged above the $8k mark, only to sink down back into the $7k range today. The current price of the flagship currency is $7,938 following a 4.53 per cent negative movement over the past 24 hours.

One crypto analyst, Travis Kling has published a chart on Twitter suggesting both gold and bitcoin has seen gains since the assassination.

Updated. pic.twitter.com/H03MDBMcIp

— Travis Kling (@Travis_Kling) 7 January 2020

However, in contrast to this, one analyst said the following as reasoning for the skyrocket in price.

“It’s likely that traders anticipate a bounce at $6,800 and many will watch to see if the $7,100 support flips to a point of resistance. On the 6-hour chart, the relative strength index (RSI) has dropped into oversold territory at 30 and the Stochastic RSI has already begun to cross above 0 so it seems an oversold bounce is already in the making.”

It will be interesting to see how this situation plays out and where the price goes from here. For more news on this and other crypto updates, keep it with CryptoDaily!