Despite initial weekend anxieties over escalating global tensions following reports of a US incursion into Venezuela, markets demonstrated remarkable resilience on Monday. The swift US response to the situation effectively quelled immediate fears, paving the way for a significant market rally. US equity indices soared to new all-time highs, while the cryptocurrency market witnessed a robust resurgence. Bitcoin (BTC) impressively climbed from $86,000 on Sunday to reach $94,000, and Ethereum (ETH) successfully reclaimed the $3,100 mark. Traditional safe-haven assets like gold and silver also began their recovery, extending their rebound on Monday – a typical reaction amidst ongoing global uncertainties.
Following a sharp downturn on October 10th, Bitcoin (BTC) had been entrenched in a daily downtrend. However, a significant development occurred yesterday as BTC successfully broke above its short-term downtrend line for the first time. This breakthrough signals a potential shift in momentum. If BTC can sustain its price above the $91,000 level over the coming days, it would confirm an effective breakout from this short-term bearish trajectory. Such a consolidation could pave the way for BTC to challenge the longer-term downtrend line, potentially ending a two-month period of downward pressure. Conversely, should this breakout fail to hold, the probability of BTC resuming its bearish trend increases, with a risk of retesting and potentially breaking below the critical short-term support level of $86,000.
While significant US economic data releases are scheduled for later this week, post-Wednesday, market attention remains sharply focused on geopolitical developments. Specifically, investors are keenly observing whether the United States will pursue further military actions after the recent stabilization of the Venezuelan situation. Media speculation is rife regarding Iran, currently experiencing domestic turmoil, as a potential next target for US military involvement. It’s crucial to recall the substantial market downturn triggered by the conflict between Israel and Iran last year. Consequently, any genuine military collaboration between the US and Israel targeting Iran would undoubtedly send ripples through global markets, significantly impacting investor sentiment. Therefore, monitoring news related to potential US military operations remains paramount in the immediate future.
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