After a significant drop below $100K, Bitcoin quickly rebounded, with analysts suggesting that this is a temporary reaction to geopolitical tensions between the U.S. and Iran.
Bitcoin Drop due to Geopolitical Issues
Bitcoin fell to $98,500 following reports of a U.S. airstrike targeting Iranian nuclear facilities. However, this drop was short-lived, as the cryptocurrency's price quickly rose back to $101,500.
Support Levels Remain Strong
Despite the volatility, Bitcoin remains within a critical technical range. Markus Thielen, head of research at 10x Research, stated that the digital asset continues to trade above its short-term realized price of $98,000 and its broader trend support level of $102,000. He noted, “As long as Bitcoin holds above these levels, traders can continue to look for tactical rally opportunities.”
Overall Market Pressure
Bitcoin's brief drop also impacted the broader crypto market. According to CoinGecko data, the total market capitalization fell by 1.5% in the last 12 hours, shedding nearly $50 billion and settling at $3.21 trillion. Most altcoins were trading in the red amid market-wide uncertainty.
Although Bitcoin temporarily dropped below $100K, experts believe this decline is not long-lasting, especially if inflation pressures lead central banks to ease monetary policy.
