Bitcoin Takes a Hit: Geopolitical Tensions Spark Selloff ๐ฎ
The cryptocurrency market is experiencing a turbulent ride as Bitcoin's price fell below $104,000. This drop comes in the wake of Israeli airstrikes on Iran, which have spurred geopolitical tensions and a subsequent selloff in risk assets.
From a 24-hour high of $108,500, Bitcoin plunged over 4%, leading to the liquidation of an astonishing $427 million in long positions. The situation highlights Bitcoin's sensitivity to global unrest, often reflecting broader risk sentiment.
Market Reaction: Investors Turn Risk-Off ๐โโ๏ธ๐จ
The geopolitical crisis in the Middle East has triggered a global market reaction, causing investors to move away from risk assets, including cryptocurrencies like Ethereum and XRP, which also saw sharp declines.
Israeli officials confirmed the airstrikes targeted military infrastructure near Tehran and Tabriz, raising fears of prolonged conflict. As tensions escalate, the U.S. has started evacuating personnel from Iraq, emphasizing the critical nature of the current situation.
Bitcoin's Technical Outlook: Can Bulls Regain Control? ๐๐
Currently trading at $103,990, Bitcoin shows signs of effort to stabilize after the sharp drop. Technical indicators reveal a challenging path ahead, with Bollinger Bands indicating increased volatility and a bearish momentum prevailing.
The Relative Strength Index (RSI) is deep in oversold territory at 25.51, hinting at a potential short-term relief bounce. Yet, with MACD values negative, bearish momentum continues to dominate.
Key support levels stand at $102,533, while resistance looms at $105,693. For bullish sentiment to reclaim control, Bitcoin must break above the $105,000 mark. Failure to do so could lead to a further dip towards the $100K threshold.
