Bitcoin and Ethereum plunged following Israel's overnight strike on Iran's nuclear facilities, triggering a massive sell-off of risk assets, including in the cryptocurrency market.

Should Iran launch a serious retaliatory strike on Israel, the military conflict could escalate into a full-scale war. This would trigger a much larger sell-off across all markets, significantly impacting the cryptocurrency space.

The prospect of escalating tensions in the Middle East always causes anxiety among investors. Uncertainty and geopolitical risks drive them to seek safer assets, such as gold or government bonds, at the expense of risk instruments, which undoubtedly include cryptocurrencies. In the event of a large-scale conflict, panic could spread across the market, prompting mass withdrawals and a sharp decline in prices. Furthermore, war could disrupt global financial systems and supply chains. This would hinder trading and transfers, negatively affecting the liquidity of crypto exchanges and wallets. Internet outages are also possible, preventing many users from accessing their assets.

On the other hand, due to their decentralized nature, cryptocurrencies could serve as a safe haven for capital in times of instability and restrictions caused by war. However, given the potential scale of the conflict, a mass shift into crypto appears unlikely. Negative factors are expected to dominate, leading to a significant drop in the value of most digital assets.

Moving forward, I will continue to base my actions on any major dips in Bitcoin and Ethereum, betting on the continuation of the intact mid-term bull market.

The short-term trading strategy is outlined below.

Bitcoin

Buy Scenario

Scenario #1: Upon reaching the entry point of around $104,600, I will buy Bitcoin today with a target of rising to $106,700. Around $106,700, I plan to exit long positions and sell immediately on the rebound.

Before buying on a breakout, ensure the 50-day moving average is below the current price and the Awesome Oscillator is in the positive zone.

Scenario #2: Bitcoin can also be bought from the lower boundary of $103,600 if there is no market reaction to its breakout, with a rebound toward $104,600 and $106,700.

Sell Scenario

Scenario #1: Upon reaching the entry point of around $103,600, I will sell Bitcoin today with a target of falling to $101,300. Around $101,300, I plan to exit short positions and buy immediately on the rebound.

Before selling on a breakout, ensure the 50-day moving average is above the current price and the Awesome Oscillator is in the negative zone.

Scenario #2: Bitcoin can also be sold from the upper boundary of $104,600 if there is no market reaction to its breakout, with a rebound toward $103,600 and $101,300.

Ethereum

Buy Scenario

Scenario #1: I will buy Ethereum today upon reaching the entry point around $2,536, with a target of rising to $2,646. Around $2,646, I plan to exit long positions and sell immediately on the rebound.

Before buying on a breakout, ensure the 50-day moving average is below the current price and the Awesome Oscillator is in the positive zone.

Scenario #2: Ethereum can also be bought from the lower boundary of $2,488 if there is no market reaction to its breakout, with a rebound toward $2,536 and $2,646.

Sell Scenario

Scenario #1: I will sell Ethereum today upon reaching the entry point of around $2,488, with a target of falling to $2,368. Around $2,368, I plan to exit short positions and buy immediately on the rebound.

Before selling on a breakout, make sure the 50-day moving average is above the current price and the Awesome Oscillator is in the negative zone.

Scenario #2: Ethereum can also be sold from the upper boundary of $2,536 if there is no market reaction to its breakout, with a rebound toward $2,488 and $2,368.