Over the past two weeks Bitcoin (BTC) has formed an uncanny correlation to traditional safe haven assets like Gold, with its price rising as tensions within the Middle East region began building earlier this month and falling when these tensions showed signs of decreasing.<\/p>\n
BTC broke below $8,000 overnight after the situation between the US and Iran showed signs of resolving itself, and analysts are now noting that BTC could be in for a significantly deeper pull back, putting its chance at another parabolic rally in grave jeopardy.<\/p>\n
At the time of writing, Bitcoin<\/a> is trading down just under 5% at its current price<\/a> of $7,930, which marks a notable decline from its recent highs of $8,400 that were set at the peak of the recent rally.<\/p>\n This rally started in early-January close on the heels of the US drone strike on a top Iranian military official, with the rally slowly gaining momentum until this past Tuesday, when bulls roared and propelled the crypto past the resistance that existed at $8,000.<\/p>\n This price, which subsequently became a key support level, was decisively broken below yesterday when bulls ramped up their selling pressure.<\/p>\n The increase in selling pressure came nearly instantly after the world learned that \u2013 for the time being \u2013 the US does not appear to have plans to retaliate against Iran for their recent missile strike on an Iraqi military base.<\/p>\n The retrace from Bitcoin\u2019s recent highs has led it to form an incredibly bearish pattern on its long-term candles, with its 3-day candle being close to posting a bearish reversal hammer, should it break below its EMA26 at roughly $7,700.<\/p>\n \u201c$BTC – 3day candle closes later today, looking like a shooter than a hammer, but closing above EMA26 support would be notable…still a ways to go for a bull cross test, on this higher time frame,\u201d Big Chonis, a popular crypto analyst, explained.<\/p><\/blockquote>\n $BTC<\/a> – 3day candle closes later today, looking like a shooter than a hammer, but closing above EMA26 support would be notable…still a ways to go for a bull cross test, on this higher time frame pic.twitter.com\/4WLp0lnFE6<\/a><\/p>\n — BIG Chonis (@BigChonis) January 9, 2020<\/a><\/p><\/blockquote>\n\n