Bitcoin fell after tense news from the Middle East raised market fears.
- Bitcoin dropped below $102,000 following U.S. military action in Iran.
- Traders watch for a rebound from support levels near $97,000.
- Past conflicts have triggered short-term dips followed by strong recovery.
Bitcoin Reacts to Geopolitical Tensions
Bitcoin (BTC) saw a sharp drop to under $102,000 after U.S. President Donald Trump confirmed strikes on nuclear sites in Iran. This happened during a live broadcast where he warned Iran to choose peace or face more attacks. Traders noted that such global events often impact crypto markets quickly.
This downward move comes ahead of what could be a volatile start to the new Wall Street trading week. Experts suggest that Bitcoin might still fall further before gaining strength again.
Support Level Could Stop Further Fall
Market analysts looked closely at $97,000 as a possible strong support zone. This level is where a large number of buy orders sit, according to data from CoinGlass. If BTC reaches this area, it might bounce back up quickly.
Trader Cas Abbe shared that a drop to $93,000–$94,000 could happen, but he gave it only a 20–25% chance. He and others believe BTC could still hold stronger in the higher $90,000 range as prices settle.
History Shows Hope for BTC After Conflicts
Past military events have shown that Bitcoin often dips first, then climbs. In April, following U.S.-Iran tensions, BTC dropped nearly 18% but later gained 28%. Similar patterns were seen in 2022 with the Ukraine war, where Bitcoin bounced 42% in just over a month.
Trader Merlijn pointed out that even though markets are nervous, BTC remains above the $100,000 mark. This signals that prices are still high compared to past years. If history repeats, Bitcoin might climb again once the situation cools.
Traders Watch for $104,500 Resistance
Many traders say that for Bitcoin bulls to stay in control, the price needs to hold above $104,500. Falling below this level could lead to more selling. If it happens, the next potential floor is near $97,000.
For now, Bitcoin is set to close the week lower than it started in May. Still, crypto traders remain hopeful, waiting for signs that a rebound is near.
Source: cointelegraph.com
