The geopolitical tensions that emerged in the Middle East following Iran’s drone-and-missile attack on Israel sent cryptocurrencies into a tailspin over the weekend. Economist Peter Schiff, who is a crypto bear, on Sunday flagged the possibility of the sell-off worsening.
What Happened: “$60K is critical support for Bitcoin BTC/USD,” said Schiff in a post on X, formerly Twitter. A decisive break below the level will likely complete a “formidable triple top,” he said.
A triple top is a bearish technical pattern where the price of a security forms three peaks at nearly the same level, which acts as a resistance level. After the third peak, if the security pulls back below the trough formed between the peaks, it could mark the beginning of the downtrend.
Schiff said, “The immediate downside projection is a move to $20K.”
He also noted that if the level is touched, Michael Saylor’s MicroStrategy, Inc. MSTR will be left staring an unrealized of $2.7 billion on the 21,400 Bitcoin it acquired at an average price of $34,000.
Why It’s Important: Geopolitical and macroeconomic challenges are negative for risky assets such as cryptocurrencies and equities. The reverberation of the crisis in the Middle East was felt first in the cryptocurrency market, given it is a 24/7 market.
While Iran said the attack was in response to Israel’s strike on its consulate in Syria on April 1 and that the matter can now be “deemed concluded,” the Israeli war cabinet is discussing whether to retaliate.
Israeli stocks took the latest development in stride. On Sunday, the The TA-125 Index, the Tel Aviv Stock Exchange’s benchmark index, saw some volatility in the morning. After declining sharply in the mid-session, it recovered to close modestly higher.
Bitcoin dropped toward $60,000 on Saturday before trimming its losses. At last check, the apex crypto traded at $64,118.40, down 4.30%, according to Benzinga Pro data.
Read Next: Iran’s Drone Strike Expected To Drive Oil Prices Up As Market Braces For Israel’s Response
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