Bitcoin Plummets Below $60K as Iran-Israel Tensions Flare, Analyst Ali Martinez Forecasts Deeper Pullback to $52K

Bitcoin plummeted to just under $60,000 on Thursday as the crypto market withstood a brutal sell-off. The crypto market bloodbath came after a major

Bitcoin dropped to just under $60,000 on Thursday as the crypto market endured a brutal sell-off.

The crypto market bloodbath followed a major missile strike by Iran targeting sites across Israel, which the latter has vowed to retaliate. Bitcoin's decline as the specter of war looms in the Middle East sparked renewed debate over whether the flagship crypto serves as a good hedge against geopolitical risks.

In the meantime, an analyst studying price charts is predicting deeper price losses for Bitcoin.

BTC At Risk Of Deeper Pullback To $52KProminent crypto analyst Ali Martinez has cautioned Bitcoin investors to prepare for a further decline following the premier crypto’s recent single-digit correction.

Martinez told his 73,300 followers on the X (aka Twitter) microblogging site that BTC could fall toward $52,000. He arrived at his prediction based on whether the descending parallel channel that BTC has been trading within since spring becomes the governing pattern.

#Bitcoin could drop to $52,000 if the governing pattern behind the recent price action is a descending parallel channel!

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A descending parallel channel is a chart formation that comprises two descending trendlines that define an asset's price movement. The pattern usually signals bearish sentiment as the price is stuck within a tight range.

Bitcoin decisively falling below the psychologically crucial $60,000 mark could prove costly, opening the doors for a deeper drop toward $52,000. The onus is now heavily on bulls to swiftly drive prices back above $61,000 or risk conceding full control to the bears immediately.

Bitcoin Below $60K Is A Buying Opportunity?Head of Digital Assets Research at Standard Chartered, Geoff Kendrick, noted in a recent investor note that BTC has failed to show itself as a safe haven amid geopolitical tensions. However, he does believe the crypto serves as a good hedge against traditional finance (TradFi) calamities like bank collapses, de-dollarization, and U.S. Treasury sustainability issues.

Kendrick also noted that the latest pullback in Bitcoin prices should be seen as an opportunity to accumulate.

“Risk concerns related to the Middle East seem set to push bitcoin below $60,000 by the weekend, but positions like the $80,000 call options highlighted here and the circularity vis-à-vis Trump probabilities suggests the dip should be bought into,” he wrote.

Kendrick also highlighted the rising BTC call options open interest on Deribit, with a 1,300 BTC jump in the past two days for December 27 expiry contracts at an $80,000 strike price. This indicates that more traders are betting on a strong year-end upsurge for Bitcoin, suggesting a positive market outlook for the alpha cryptocurrency.