Bitcoin dropped more than 4%, falling to $103,556 after Israeli airstrikes targeted military sites near Tehran and Tabriz, escalating tensions in the Middle East. The selloff followed a 24-hour high of $108,500 as investors reacted to fears of a wider geopolitical conflict, triggering $427 million in long position liquidations.
Prime Minister Benjamin Netanyahu described the strikes as a preemptive move against Iran’s nuclear threat, warning the operation could continue for several days. Iran has yet to officially respond, though state media reported explosions and airspace closures.
In response to the escalating situation, the U.S. began evacuating diplomats from Iraq and recommended voluntary military family evacuations from neighboring countries. The State Department also urged American citizens to leave Iraq due to regional instability. U.S. Secretary of State Marco Rubio confirmed Israel informed the U.S. prior to its action.
Cryptocurrency markets turned risk-averse, with Ethereum dropping below $2,500 and XRP sliding to $2.10 alongside Bitcoin’s decline. Historically, Bitcoin’s price is sensitive to geopolitical unrest, often retreating as traders avoid volatile assets.
At the time of reporting, Bitcoin traded near $103,990, showing minor stabilization after dipping briefly below $103,000. Technical indicators suggest increased volatility and bearish momentum. On the 2-hour chart, Bitcoin remains under pressure with widening Bollinger Bands and price near the lower band.
The Relative Strength Index (RSI) is in oversold territory at 25.51, signaling possible short-term relief, while the MACD remains deeply negative, indicating persistent bearish momentum. Shorter timeframes show attempts at recovery, but caution remains as support at $102,533 and resistance near $105,693 are tested.
A sustained move above $105,000 could reduce selling pressure, but failure to reclaim this level risks a further drop toward $100,000. Overall, market sentiment remains risk-off amid ongoing geopolitical uncertainty.