Bitcoin tumbled below $60,000 over the weekend, fueled by conflict between Iran and Israel, sparking fears that escalation could lead to Western involvement in a war in the Middle East—an all too common occurrence in the 21st century that would lead to increased inflationary pressures and disrupt global supply chains and commodity markets.
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While skeptics were quick to mock bitcoin’s near instantaneous selloff in reaction to the news of conflict, ironically bitcoin was one of the only global asset open for trading on the weekend, with equities, commodities, and bond strategists alike turning their eyes to the bitcoin chart in an attempt to assess what the damage might be to global markets upon the Sunday night trading open.
Turning away from geopolitics, this brief article will take a look at the latest in on-chain spending behavior and Bitcoin derivative markets, to analyze whether the current dip from the highs of $73,000 is typical of a standard bull market correction or more so a cyclical peak.
Many preconceived notions of a typical Bitcoin cycle have already been shattered with new highs being broken before the upcoming halving taking place on block 840,000. So let's evaluate and take a look at where we are, and how these conditions and investor behavior also inform what might come next.
DETAILED VIDEO : https://drive.google.com/file/d/1fdnwWobfp8fKYQ0-3FHb-oHTBR61A56G/view?usp=drivesdk
We’ll be looking at both on-chain data, to analyze the actions of incumbent Bitcoin hodlers and new market entrants alike, before taking a look at the derivatives market to gauge whether there is anything worrisome in regards to the leverage currently present in the market.