Bitcoin‘s price has experienced a decline, breaching the $27,200 support level, as tensions escalate in the Israel-Hamas conflict. The situation in Gaza has worsened, resulting in over 1200 reported deaths.
Key Technical Indicators
Bitcoin is currently trading below $27,500 and the 100-hourly Simple Moving Average. On the BTC/USD hourly chart from Kraken, a crucial bearish trend line has formed, with resistance around $27,550. If the conflict continues to intensify, Bitcoin may potentially decline below the $27,000 support level.
Source: BTCUSD on TradingView.com
In the event of an upward correction, Bitcoin may encounter resistance around $27,400, followed by the $27,500 level and the mentioned trend line. The primary resistance lies at $27,800, and a break above this point could lead to a test of $28,250.
Possibility of Further Losses
Failure to regain ground above the $27,500 resistance could result in further losses. Immediate support on the downside is approximately $27,000, or the 1.236 Fibonacci extension level based on the upward move from the $27,185 swing low to the $28,284 high.
The next significant support level is situated at $26,500, and a breakdown below this level might drive the price even lower, with the subsequent support found at $26,000. The Bitcoin market remains sensitive to ongoing geopolitical developments in the Middle East.
