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Just flip when told to flip.
Just as the market hasn't fully recovered from the excitement of 78K, Iran's military today came out to slap back—because the U.S. "repeatedly broke promises," control of the Strait of Hormuz has been restored to its previous state, now under strict control of the Iranian armed forces.
Remember the logic behind BTC's recent rise a few days ago? Middle East easing, Hormuz reopening, risk sentiment returning.
Okay, now that logic is gone.
This is no small matter. The Strait of Hormuz transports over 20 million barrels of oil daily, nearly 20% of the world's oil supply passes through here. If the situation tightens again, crude oil prices will rise, inflation expectations will increase, and the story of the Federal Reserve cutting interest rates becomes even harder to tell, putting risk assets under pressure across the board.
The macro support behind this wave of BTC's rise has now been directly taken out.
Of course, whether the market will react immediately depends on how the U.S. and Iran interact next. But in terms of direction, this news is bearish, and there's nothing to wash out.
That support level at 73K now needs to be watched more closely.
Look carefully before acting.
Not advice, DYOR.