Bitcoin Retreats Below $100K Amid Geopolitical Tensions

Bitcoin’s price dipped below the $100,000 psychological barrier for the first time since mid-May, falling 12% from its all-time high on June 22, influenced by global events and heightened liquidations.

Contents

Bitcoin Retreats Below $100K Amid Geopolitical Tensions Rally Interrupted, Correction Deepens Defensive Bids, Further Downfall Potential Geopolitical Influence and Analyst Perspectives Disclaimer

Rally Interrupted, Correction Deepens

Bitcoin (BTC) surged to nearly $109,000 at the start of the previous week before experiencing a sharp sell-off. Data shows the price retreated as low as $98,240 on June 22, a 5% intraday drop.

This decline coincided with broader market volatility sparked by U.S. airstrikes targeting Iranian nuclear sites. The ensuing market reaction saw significant derivative liquidations, totaling $672 million in a single day, with over $238 million specifically linked to long positions in Bitcoin.

Defensive Bids, Further Downfall Potential

Buyers entered the market around the $98,000-$99,000 zone, briefly stabilizing the price. However, a liquidation heatmap suggests buying interest remains clustered below $97,000.

Technical analysis points to potential further downside. Analysts note a potential “rounded top” formation on the daily chart. A confirmed break below the $93,000 support level could signal a more severe correction, extending towards $74,730.

The current Relative Strength Index (RSI) reading of 41 indicates a strengthening downward momentum compared to recent highs.

Geopolitical Influence and Analyst Perspectives

The sharp correction underscores the impact of geopolitical uncertainty on crypto markets. The potential depth of the Bitcoin decline hinges on the evolving situation.

Technical analyst AlphaBTC commented, “This week will be a big influence on the rest of the summer for markets and risk assets.” Lower support levels cluster near the $80,000 area on longer charts.