Bitcoin Drops Below $110,000, Forms Bearish Triangle Pattern Amid Geopolitical Tensions

Bitcoin's price has recently formed a descending triangle pattern, a technical chart formation that is typically associated with bearish breakdowns. This pattern emerged after Bitcoin failed to reclaim $110,000 earlier this week, causing the price to slip below the 21-day moving average but remain above support at the 50-day moving average. The descending triangle pattern is characterized by a series of lower highs and a horizontal support level, which in this case is around $102,000. The 21-day moving average is currently acting as resistance, while the 50-day moving average is providing temporary support.

The ongoing tensions between Israel and Iran have added to the uncertainty in the global markets, causing investors to adopt a more cautious stance. This geopolitical instability could potentially force Bitcoin out of its current range, leading to either a breakout or a breakdown. If the fear in traditional markets continues to increase, Bitcoin could break below the $102,000 support, confirming the bearish implications of the descending triangle pattern. However, if bullish momentum returns, a break above the descending trendline could invalidate the bearish pattern and open the door for a retest of the $110,800 all-time high region.

At the time of writing, Bitcoin is trading at $104,990. The next major trend will likely be dictated by whether Bitcoin breaks above the resistance or falls through the support. If the descending triangle pattern continues to play out with lower highs and steady support, the breakout will lean more towards a downside breakout. However, it is important to note that Bitcoin's price movements during periods of geopolitical instability can be unpredictable, and it could act as a haven or be sold off for liquidity.