May 4th Evening Bitcoin Analysis



The news of Iran attacking U.S. warships this time temporarily amplified the market's risk aversion sentiment, and everyone panicked and sold first. But looking deeper, the U.S. side has not responded yet, and the situation is unlikely to spiral out of control immediately; it’s more of a one-time emotional shock rather than a sign of ongoing deterioration.

Moreover, the decline of Bitcoin was more a passive follow of market risk aversion, and fundamentally there were no negative signals. After the news is digested, panic emotions will subside, and the oversold positions can easily be recovered by funds.

From the chart, after the drop, there was a quick rebound, indicating that the bearish momentum has been largely released. As long as the situation does not escalate further, and market sentiment recovers, Bitcoin is likely to return to its previous rhythm.
BTC1.45%
ETH0.76%
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