"It behooves a speculator to speculate, and nothing gets the attention of the speculator more than the classic market catalyst of war in the Middle East.”
During last week almost every market was unpredictable and was being moved purely by fundamentals and speculations, with almost every mainstream media posting about a potential "war", we had GOLD almost reaching a 7 year peak, OIL surged dramatically, as well every other safe heaven asset.
With that being said, we noticed that even Bitcoin is finally starting to find its place as a "safe heaven", anticipating a price surge to almost $8500 after Iran retaliated for the U.S. killing of Iranian general Qassem Soleimani.
Despite the fact that surge was short-lived as the bitcoin price has fallen back following U.S. president Donald Trump's comments downplaying the situation in Iran and suggesting "Iran appears to be standing down."
Now, combining this with the charts on the weekly time-frame you can see that it all played out pretty well, we spiked to the 61.8% FIB level known as the golden ratio after the and reversed back down just under $8000.
Should the weekly candle close like this, back inside the highlighted area of $8000 we could be seeing a reversal back towards 7000-7500 level before heading down to to fulfill the Fibonacci targets that also correlate with the $6000 major and the 5500 - weekly ascending trend-line. If the media keeps manipulating the market we could anticipate another spike towards the $9000 level that correlates with the 78.6% FIB level - before a potential reversal to fulfill FIB targets that were mentioned above