U.S.-Iran negotiations fail and the market goes haywire! Where will Bitcoin and Ethereum go from here?

Over the weekend, the first formal U.S.-Iran negotiations took place, but no effective consensus was reached, making for an extremely unpleasant situation. The core disputes between the two sides are control over the Strait of Hormuz and Iran’s uranium enrichment issue. The U.S. demands touch Iran’s bottom line, but both sides also left room for further talks afterward. After that, the U.S. blocked the strait and threatened to use force, and Iran also said it was prepared to respond, directly leading to chaos in global markets.

Speaking of Bitcoin, on Saturday, our 63488-63880 short position we set up in advance was executed with precise timing and successfully captured the down-move. Now that Bitcoin has broken below the bearish flag pattern, after two pullbacks near the 70429 support, there have been rebounds, but it has still been unable to break through the resistance at 71445, and the rebound strength has been weak throughout.

Next, the key is whether the 70429 support can hold. If it holds, there will be further rebounds; but only if it stays above 71445 can it continue higher to 72281-73288. If it can’t hold and breaks below 70429, it will test the 69263 support below, and the hourly uptrend will come to an end, bringing a deeper decline. If it keeps failing to break through the resistance, it will most likely trade in a narrow range between 71445-70429.

$BTC Trading idea: Short in the 71768-72178 range, move the stop loss to 73000, and for targets first look at 69730; if it breaks, then watch 69270 and 68250.

As for Ethereum, the 4-hour timeframe has already broken below 2173, and it is now expected to drop to 2124-2085. Currently, Ethereum has broken the key bullish trendline and the box’s midline. If the subsequent rebound can return above 2216, the outlook won’t be a big problem; if it can’t, it will inevitably pull back to 2157.

$ETH Trading suggestion: Short in the 2243-2258 range, stop loss at 2280, and for targets first look at 2156; if it breaks, then continue to watch 2127.