Bitcoin (BTC) has closed three consecutive daily red candles after hitting a local top of $24,600 on July 30. The peak-to-trough loss for this period was $1,800, or 7%.
Today, August 3rd, we see some reprieve as buyers outperformed by 3%. At the time of writing, BTC was trading at his $23,300 while the rest of the market was trading sideways with a slight upward bias.
according to bloomberg newsconsidering the recent crypto price movements were rising tensions between the US and China over House Speaker Nancy Pelosi’s visit to Taiwan.
A few weeks ago, the Chinese hierarchy had warned Pelosi to cancel the trip. However, the Speaker of the House of Representatives landed in Taiwan on August 2, escalating geopolitical tensions.
Bitcoin falls below $25,000
The threat of escalation between the two superpowers has prompted investors to ditch equities and US stock futures. Bitcoin also suffered a minor selloff, dropping 3% a day before closing at $22,900.
Since July 13th, BTC has been trending up after making a local bottom at $18,900. The rise peaked over the weekend, dropping just below $25,000 as tensions between the US and China rose over Pelosi’s visit to Taiwan. Bloomberg noted that this is Bitcoin’s highest since October 2021.
As ever, technical analysts are divided on what happens next. Michael van de Poppe He pointed out that this run meant BTC closed (slightly) above the 200-day moving average for the first time in five weeks. 200-day moving average It is considered a long-term uptrend.
on the other hand Joe Champion A head-and-shoulders pattern unfolds, and we see the price drop further in the short term.
US-China tensions rise
The Chinese Communist Party sees Taiwan as an independent republic that will one day be reunited with the mainland.
Ahead of Pelosi’s visit, a phone call between President Xi Jinping and President Biden ended with hints that Xi would have some influence if Pelosi went ahead with her visit to Taiwan. zero hedge.
“You can’t go against public opinion. Those who play with fire will perish in fire.”
Speaker of the House of Representatives Addresses Press on Taiwan Landing Said It was “clear” from the beginning that the United States would not “give up” Taiwan.
“Forty-three years ago, America promised to always stand by Taiwan. Today, our delegation is here to make clear that we will not abandon our commitment to Taiwan.”
In response, China imposed sanctions Taiwan suspends exports of natural sand and certain foods such as fish and fruit. natural sand Components of semiconductor manufacturing.
live ammunition Military exercises will begin around the Taiwan Strait on August 4, with some exercises occurring within 10 miles of Taiwan’s coastline.
