Bitcoin has increased by 2.2% to $66,681, while XRP has risen by 3.6% to $1.152, as both cryptocurrencies encounter chart resistance. This occurs alongside Iran’s allegations of a strike on Amazon’s data infrastructure in Bahrain.
Summary
- Bitcoin approaches the Fibonacci resistance level of $67,257, showing a bullish trend in its daily chart.
- XRP has successfully broken through a symmetrical triangle formation, hinting at upward movement towards $1.30.
- Iran’s unconfirmed claim about a strike on Amazon adds a layer of geopolitical tension to the current cryptocurrency rallies.
The Iranian state news agency IRNA reported that the Islamic Revolutionary Guard Corps (IRGC) launched multiple cruise missiles targeting what they claimed was Amazon’s central data infrastructure in Bahrain on July 21. While the IRGC maintains that the facility was destroyed, neither Amazon nor Bahraini officials have confirmed this statement as of the time of writing.
The IRGC stated that this operation was a direct response to a US attack on the construction site of Iran’s Darkhovin nuclear power plant. Additionally, the Iranian military has threatened 18 American tech companies, including Microsoft, Intel, Cisco, and Google, citing their supposed connections to US military and intelligence activities.
Amazon Web Services (AWS) facilities in Bahrain and the United Arab Emirates have faced attacks throughout the ongoing conflict. An AWS facility in Bahrain was damaged in April due to an Iranian attack, causing service disruptions in the region.
Investor sentiment remains cautious since the IRGC’s account has not been independently verified. Amazon shares ended the day up 1.12% at $249.99 on Monday, but US stock futures later lost some gains as news of the alleged strike circulated.
Military operations continued as Pakistan sought diplomatic solutions. The US Central Command has undertaken a series of new strikes against Iran, marking the tenth consecutive night of military activity.
CENTCOM reported targeting Iranian command centers, maritime assets, missile and drone launch sites, and air-defense systems. The US military claimed these strikes aim to reduce Iran’s capability to attack commercial shipping in the Strait of Hormuz.
Meanwhile, the Associated Press noted that Pakistan is actively seeking to resume ceasefire negotiations, even as Iran continues its strikes on sites in Bahrain, Kuwait, and Jordan, disrupting commercial shipping through the Strait of Hormuz.
Bitcoin Recovery Encounters Fibonacci Resistance
Bitcoin (BTC) rallied from a daily low of $65,149 to a high of $66,956 on Binance, as depicted in the TradingView chart. This movement brought BTC close to the 61.8% Fibonacci retracement level at $67,257, calculated from the drop between $82,485 and $57,845.
According to TradingView’s daily analysis, the $67,257 level serves as the key technical resistance. A daily close above this mark could set $70,165 as the next target, with further potential to reach the 38.2% level at $73,073.
Failure to break through the 61.8% level would confine Bitcoin within the recovery range established since its late-June low. The nearest downside level on the chart is $63,118, reflecting the 78.6% Fibonacci retracement and aligning with recent consolidation patterns.
Momentum has improved with the price rebound. Bitcoin’s relative strength index is at 61.91, above its moving average of 53.05, but still below the overbought threshold of 70, per TradingView.
The daily MACD is in positive territory, with the MACD line at 508.46, the signal line at 406.09, and the histogram at 102.37. These indicators point to bullish momentum; however, the narrow gap between the lines indicates that BTC must surpass $67,257 to strengthen the bullish signal.
Bitcoin’s latest candle started at $65,255 and maintained a positive outlook during the chart capture. However, the ongoing daily candle means the attempted breakout will only be confirmed once the session concludes.
XRP Breakout Targets $1.30
XRP (XRP) has broken above the descending boundary of a symmetrical triangle on its Binance daily chart. According to TradingView, the token advanced from a session low of $1.111 to an intraday high of $1.158 following weeks of constricted price movement.
This pattern emerged between declining resistance from the swing high in mid-June and rising support from the late-June low. XRP’s breakout above the upper trendline suggests a potential upward move, although confirmation requires a daily close outside this formation.
Based on the expected height illustrated in the diagram, the triangle indicates a possible move of about $0.2845. Adding this value to the breakout area establishes the first price target near $1.30.
A secondary resistance level is found at $1.374, which served as a trading zone prior to XRP’s significant decline in early June. Therefore, $1.30 seems to be the initial target, followed by $1.374 if buyers maintain their momentum.
The Aroon indicator on TradingView supports this bullish movement, with Aroon Up at 100% and Aroon Down at 42.86%. Furthermore, the Chaikin Money Flow has risen to 0.08, indicating a resurgence of buying pressure during the breakout.
A fall below the triangle’s upper boundary around $1.10 could undermine this pattern and threaten its rising support. Consistent trading above the breakout point will keep the chart bullish towards $1.30, regardless of the unconfirmed claim about the Amazon strike and the ongoing US-Iran military actions, which may heighten volatility for both XRP and Bitcoin.
Disclosure: This article is not intended as investment advice. The information and materials on this page are for educational purposes only.
