Bitcoin falls below $73,000 amid geopolitical tensions and massive outflows

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The price of Bitcoin (BTC) fell sharply, breaking the level of $ 73,000 on Thursday, following the target of the Iranian Islamic Revolutionary Guard Corps at the US airport in Kuwait. This event caused a widespread panic that swept the global markets, causing the total market value of digital currencies to fall from $2.54 trillion to $2.45 trillion in one session.

The pressure was not limited to geopolitical conflicts, but it was exacerbated by the withdrawal of Bitcoin and Ethereum ETFs that exceeded $ 800 million on Thursday, recording the largest daily redemption in weeks. This number didn’t come out of nowhere; The third quarter actually witnessed the outflow of $737.70 million from Bitcoin money and $67.10 million from Ethereum money, extending the list of net outflows for the eighth day in a row. Therefore, it seems that the institutional pressure that pushed Bitcoin from the level of $60,000 to the previous peak has completely changed its current direction.

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The data confirms that the total amount of money leaving Bitcoin and Ethereum in just two days exceeded $870 million. The eight-month streak is one of the longest withdrawals since the introduction of the Bitcoin spot currency in the United States. It has been noted that capital has started to move away from Bitcoin and Ethereum to lower-cost digital assets instead of back to cash, a key difference in understanding the upcoming movements in the price of BTC.

In a related story, the Crypto Fear and Greed Index fell to the 31 level on Thursday, which effectively puts the market in the “fear” zone. This shift in thinking shows that the problem is not limited to containers. To change several exits, traders are waiting for either a sign of a reduction in international tensions or a major economic stimulus, such as a gradual decrease in the expected CPI or housing statements from the Federal Reserve, which is not close.

How is the US-Iranian conflict driving risk?

The method of influence here works directly; The increase in global risks in the Middle East is causing investors to become defensive, which means reducing their initial exposure to the financial sector. Although Bitcoin has been promoted as “digital gold,” it has served as a high-risk asset during times of crisis rather than a safe haven; While gold rose with oil prices above $94 globally, Bitcoin fell sharply.

Iran’s Revolutionary Guard warned that “any further attack on America will provoke a serious response,” holding Washington responsible for its consequences. The concern was reflected in Asian stock markets in Taiwan, South Korea and Japan, which fell nearly 3% on Thursday. Liquidations in the crypto market also increased the decrease, as more than $900 million was liquidated in 24 hours, including $873 million from long-term positions, contributing to the decrease in the position price beyond the effect of the fund leaving alone.

Will the price of Bitcoin return to the level of $ 74,000 or will it go lower?

The price of BTC is currently trading below the $74,000 level, a level that has turned from emotional support to immediate resistance. The strong movement of currency and the decline in prices has encouraged the belief that the area of ​​$ 73,000 – which experts saw as the dividing line between the gradual correction and the collapse of the system – is now the ceiling to look at and not the floor to rely on.

The next most important support is in $70,500 to $71,000, where on-chain data shows an increase in buying orders. As for breaking the level of $70,000 and settling below it, it will open the way to the level of $68,000, where the 200-day Exponential Moving Average (200-day EMA) is present. The Relative Strength Index (RSI) is currently stable around 38 on the daily frame, which indicates a continuation of the downward trend without reaching the oversold stage, which means that there are many selling positions before it.

To return to the top, Bitcoin should recover the level of $ 74,000 and close above it with strong trading volume, then hold the level of $ 73,500 as support. This will indicate that the $70,500 floor will hold and the correction will end. Conversely, a daily close below $70,000 would confirm a market reversal, not just a political one, making $68,000 the next target.

A note Bitcoin falls below $73,000 amid geopolitical tensions and massive outflows appeared for the first time Cryptonews Arabic.

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