Bitcoin (BTC) experienced a sharp decline amidst heightened geopolitical risks, impacting the overall cryptocurrency market.
Current Bitcoin Statistics
As of June 22, Bitcoin is trading at $99,636.89, representing a 3.8% drop in the past 24 hours. BTC's market capitalization stands at $1.98 trillion, also a 3.45% decrease from the previous day. The 24-hour trading volume surged by 17.56%, reaching $52.24 billion, indicating panic activity in the market.
Reasons for the Cryptocurrency Decline
The price decline of Bitcoin was driven by multiple interconnected factors. The U.S. airstrike on Iran's Fordow nuclear site triggered massive liquidations, wiping out over $1 billion in leveraged long positions. Iran's retaliatory actions, including the closure of the Strait of Hormuz, led to a drastic rise in oil prices, negatively impacting market sentiment and dragging Bitcoin lower. Additionally, ETF inflows have weakened, dropping from 9,700 BTC to merely 3,300 BTC.
Prospects for Bitcoin Recovery
From a technical perspective, Bitcoin failed to hold the key psychological level at $100,000. Current support appears near $97,000. Should bears breach this level, the next downside target could be in the $93,000–$94,000 range. Resistance is noted at $102,000 and $106,000. A recovery beyond $106,000 could shift short-term sentiment favorably. Indicators suggest increasing downward pressure, with the RSI currently at 35.55.
Bitcoin's decline amid global geopolitical tensions highlights the influence of events on the cryptocurrency market. Analysts are eyeing the $97,000 level as a potential reversal zone but remain cautious given the escalating situation between the U.S. and Iran.
