With US/Iran peace talks right on “the borderline” according to President Trump, financial markets are also at a crossroads. If a deal can be struck and the Strait of Hormuz is reopened, most financial assets could surge. On the other hand, if a deal falls through and hostilities break out again, the U.S. stock market, and Bitcoin, could be heavily sold down. $BTC price regains descending channel Source: TradingView The 4-hour chart for $BTC shows us that the rally is in process and that the price has regained the descending channel . That said, there are a few bearish factors to take into account. One is that the 200 SMA in this time frame is not far overhead and is lending its weight to the $78K horizontal resistance level . Another is that according to the Stochastic RSI indicators, the current upside phase may be topping out. If we look at the last downside phase, it can be seen that this was quite a plunge which wiped more than $6,000 from the price. This upside phase has only amounted to a gain of around $2,000 so far. Potentially with another bearish phase to come, could this force a lower low below the strong $76K support level? Bitcoin needs that Middle East peace deal. Bull flag breakout back in play? Source: TradingView With the $BTC price having travelled inside its bear flag for well over 3 months so far, it still looks far from resolving. The previous bear flag was of a 2-month duration and led to the sharp plummet down to $60K. It looks like the bulls are making a real fight of this one. The small descending channel that has brought the price back into the bear flag can actually be taken as a bull flag , so with the $BTC price regaining this flag, there is now the possibility of a breakout further down the line that could take the price clear of the major $80K horizontal resistance, the 200-day SMA, and the top of the bear flag. The measured move out of the flag would be to around $85K. The possibility of a major resistance breakout Source: TradingView While in the weekly view the $BTC price looks to have been solidly rejected from the $82K major resistance level, it could be taken that this was the first attempt at a breakout, and if further attempts are made, just like beating on a glass roof, the resistance could then shatter. A slight problem could be that the Stochastic RSI indicator lines are rolling over and could be signalling the start of the next decent-sized leg down. That said, just as happened the last time they reached the top, there could be a bounce from the 80.00 level that could help to take out the major resistance. Once again, a US/Iran peace deal, or lack of one, could play a major role in what happens next. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
