Bitcoin is on its third day of notable decline. However, the current day is the biggest in more than a month. It started October 1 at $63,331 but attempted to recover from the previous day’s decline with limited success as it peaked above $64k. It soon retraced and dropped to a low of $60,164.
Although it is seeing a slight increase, it has yet to reclaim $61k and is down by almost 4%. BTC continues to bleed as it has yet to recover from Monday’s decline, which saw prices down by over 3%. However, the most recent drop, although continuing the trend, has other causes.
What Caused the Dip
The fear of an impending world war is causing some investors to panic sell. The Middle East is boiling again. Following several strikes on targets in neighboring countries, Israel received a strike of its own. Ira decided to attack the Jewish nation with over 180 hypersonic missiles. The Iranian military claimed that all projectiles hit their targets and it achieved its objectives.
Israel did not counter this claim but promised to retaliate at a “time and place” of its choosing. While the market is grappling with the recent escalation, the chances of further escalation continue ravaging various commercial sectors worldwide.
For example, the United States stock exchange saw notable losses in the last 24 hours due to the recent situation. Large market caps like Apple and NVIDIA lost over 3%, while Microsoft bled 2%. Other assets like Guardion Health Sciences and ZW Data Action Technologies dropped by over 25%.
Bitcoin RSI is Neutral
On-chain data showed that the apex coin is overbought. The relative strength index showed that it was due for corrections last week. However, the indicator is neutral following the series of massive selloffs. Stochastics also carries the same reading, which may indicate a possible rebound.
Nonetheless, traders lost over $489 million due to liquidations. The bulk of the losses were from the bulls, who accounted for over $439 million of the total REKT funds.
