Bitcoin came under renewed selling pressure on Wednesday as rising geopolitical tensions in the Middle East rattled investor sentiment, pushing the world’s largest cryptocurrency closer to a key technical support zone that analysts warn could pave the way for a decline toward $60,000.
According to crypto.news data, Bitcoin ($BTC) dropped 4.5% during intraday trading, touching a low of $65,700 before recovering slightly to trade around $67,100. The latest decline extends a broader downward trend that began after Bitcoin lost critical support levels near $72,000 and $68,000, leaving the asset near its weakest levels since February.
The selloff intensified following reports that Iran launched missiles targeting the U.S. Fifth Fleet headquarters in Bahrain in response to recent U.S. military strikes. The development triggered a risk-off reaction across financial markets, prompting investors to reduce exposure to risk assets, including cryptocurrencies.
Institutional demand also showed signs of weakening. Data from SoSoValue revealed that U.S. spot Bitcoin exchange-traded funds (ETFs) recorded net outflows of $519 million on Tuesday, marking the 12th consecutive trading session of withdrawals. The streak represents the longest period of sustained outflows since the launch of spot Bitcoin ETFs and highlights growing caution among institutional investors.
Market sentiment was further affected by a disclosure from Strategy, which revealed in a Form 8-K filing that it sold 32 Bitcoin worth approximately $2.5 million. Although the transaction was relatively small, it represented the company’s first Bitcoin sale in nearly four years, raising questions about its long-standing buy-and-hold strategy.
Macro Pressures Add to Crypto Weakness
Broader macroeconomic concerns also weighed on digital assets as traders monitored developments in the Middle East. Oil prices remained volatile amid fears that escalating tensions between Iran and the United States could disrupt energy supplies and reignite inflationary pressures, potentially complicating monetary policy decisions for the U.S. Federal Reserve.
Meanwhile, traditional safe-haven assets failed to attract significant inflows. Gold and silver prices declined alongside cryptocurrencies, suggesting investors were reducing risk exposure across multiple asset classes rather than rotating into precious metals.
In contrast, Japan’s Nikkei 225 index gained 2.5%, highlighting a divergence between cryptocurrency markets and segments of the global equity market.
Derivatives markets reflected the growing uncertainty, with data from CoinGlass showing that more than 272,000 traders were liquidated over the past 24 hours. Total crypto liquidations reached approximately $1.8 billion, with long positions accounting for the majority of losses as Bitcoin broke below key support levels.
Additional concerns emerged after wallets linked to the collapsed Mt. Gox exchange transferred 10,422 Bitcoin, valued at roughly $739 million, to a new address. Although no sale has been confirmed, the movement revived fears that creditor repayments could introduce additional supply into an already fragile market.
Technical Indicators Point to Further Downside Risk
From a technical perspective, Bitcoin appears close to completing a rounding top pattern on the daily chart, a formation often associated with bearish reversals and extended corrections following a breakdown of support.
On the weekly timeframe, Bitcoin remains below the 0.786 Fibonacci retracement level near $74,233. Analysts are closely watching the $65,400 area as an important support zone, while the next major downside target is positioned near $60,042, corresponding to the full retracement level.
Technical indicators continue to favor sellers. The weekly Supertrend indicator has turned bearish, with resistance identified near $90,050. Bitcoin also remains well below the 0.618 Fibonacci retracement level around $85,374 and the midpoint retracement near $93,199, suggesting that any meaningful recovery would require a strong move above these levels.
Momentum readings further reinforce the bearish outlook. The Aroon Down indicator stands at 100%, while the Aroon Up indicator remains near 7%, signaling strong downside momentum. The MACD indicator also remains in negative territory, with the MACD line trading below the signal line.
Several market analysts have highlighted the loss of key support zones as a warning sign for investors. Crypto analyst Master of Crypto noted that Bitcoin has already surrendered the $72,000 and $68,000 support levels, while Team LAMBO suggested that a retest of the 0.618 Fibonacci level could be followed by another rejection, potentially driving prices toward $65,000 or lower.
Should Bitcoin decisively break below the $65,000 support level, analysts believe the next major demand zone could emerge near $60,000. Conversely, a recovery above $68,700 may ease immediate downside pressure and allow for a retest of the $72,000 region. A sustained move above $74,233 would significantly weaken the bearish outlook and restore a more constructive technical picture.
