Bitcoin has pulled back again. The price dropped by about 2% to $68,500, completely erasing the rise above $70,000 seen the previous day. The market is not reacting to internal events. The main factor is geopolitics.
Markets Shift to Cautious Mode
The trigger was the escalation of the situation around Iran. The deadline for negotiations shifted from rhetoric to real risk, and this quickly affected all asset classes.
Investors began moving into safe-haven assets. Oil rose above $113 per barrel, and gold climbed to $4,654 per ounce. This is a classic reaction to increased uncertainty.
The crypto market was not left out. Bitcoin declined, and altcoins showed moderate decreases. Ethereum returned to $2,100, BNB fell to $600, and XRP is trading around $1.32. The total market capitalization held around $2.44 trillion. The drop is limited, but the mood has changed.
Yesterday’s Rally Was Weak
The rise above $70,000 looked unstable from the very beginning. It was driven not by capital inflows, but by the liquidation of short positions.
According to the derivatives market, the volume of forced short closures exceeded $145 million. This created a short-term spike that quickly ran out of steam. There was no new demand following this move. That is why the price returned downward so quickly.
The $70,000 Level Remains a Problem
Since the end of February, Bitcoin has regularly tested the $70,000 mark. Each attempt ends the same way.
The price faces profit-taking and a lack of liquidity. As a result, a recurring scenario forms: rapid growth followed by an equally rapid pullback.
This level is gradually turning into a persistent supply zone. Until the market shows steady demand, a breakout remains in question.
Macro Factor Returns to the Forefront
Crypto factors are not the focus right now. The main risk is linked to the energy market and possible supply disruptions.
The Strait of Hormuz remains especially important. It is a key route for global oil. Any disruptions there could increase pressure on the global economy.
This is a negative backdrop for Bitcoin. The asset still moves in sync with risk assets and is sensitive to external events.
What’s Next?
In the short term, the market remains in a range. The $70,000 zone acts as resistance, while current levels form intermediate support. If geopolitical tensions intensify, pressure may persist. In that case, Bitcoin risks continuing to move downward.
If the situation stabilizes, the market will have a chance to test the upper boundary of the range again. But for a confident rally, capital inflows are needed, not just liquidations. That is not visible right now.
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