New Narrative for Downside: Conflict in Asia

The tension in Asia is quite high for a long while. Yet, it is the first time the crypto market is priced with the conflict between these countries. Actually, things are not going well for banks in China, thus, there should be something "more important" than money to control people.

The Crypto market was green and the investors are optimistic about the short term. With the monthly candle, we were getting ready to see 28k for Bitcoin even if it would not mean that the bull run has started. Unfortunately, the new narrative hits the market deeply.

What's the Story Behind

It may sound childish but China warns about a politician's visit to Taiwan and conflict arises from there. While the politician is on the plane en route to Taiwan, China starts live drills near the Taiwan border. Then things go crazy in an abbreviated version.

Read on ZeroHedge for the details.

In reality, the story is much deeper as we all know very well. However, the hottest issues are likely to affect the crypto market negatively.

Within 24 hours, Bitcoin lost around 5% value majorly due to the negative news coming from the tension in the area. The eyes were on the monthly candle to take positions for higher price levels. However, the global tension may trigger deeper sell-off waves in the crypto market.

Remember what happened last time.
Crypto market tanks when the global issues arise. While this invasion gave birth to the food crisis, the conflict in Asia will bring new problems to several industries in addition to problems in global trade.

Where will Crypto Find Support?

If the problems grow and the market heads down more, what levels will work as a support line?

I think it will be directly about the severity of the conflict. If there would be military operations, then we may see 17K in a couple of days. Yet, if the case may not be beyond the verbal war, then 20,500 may still stay strong for Bitcoin.

In the case of operations, the sanctions on China will be pretty harsh, as well. As China plays an important role in global trade, the consequences of such restrictions to China may also come up with brand new problems.

We will see how investors will react to the news from Asia. I hope nobody gets hurt because of political issues between countries. This week will be too tense for everyone...

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