The cryptocurrency market faced a sharp decline as Bitcoin’s price dropped over 4%, falling below $100,000. Geopolitical events were the main factor behind this drop.
Reasons for Bitcoin's Price Drop
Bitcoin’s price fell following former President Donald Trump’s announcement of bombings on three nuclear sites in Iran, which he described as a 'successful' operation, creating rising tensions in the region.
Crypto Market and Position Liquidations
Due to the increased market tensions, over $1.02 billion worth of positions were liquidated in a single day. Bitcoin led the decline while popular altcoins like Ethereum and Solana also lost value, breaking key support levels.
Outlook for Bitcoin and Market Dynamics Ahead
Currently, Bitcoin is testing a support level between $100,000 and $102,000. If it holds above, a short-term recovery may be possible. However, if it falls below this range, the next support could be around $96,000 to $97,000. Analysts are also noting weakening momentum, predicting a potential prolonged correction phase.
The cryptocurrency market faces a high level of uncertainty fueled by geopolitical risks and technical indicators suggesting a possible continued correction phase.
