On the first day of the week, Bitcoin experienced a sharp decline, dropping to the $76,500 level. This abrupt fall was largely attributed to escalating political tensions between the United States and Iran. During Asian trading hours, Bitcoin saw a sudden loss in value, wiping out all gains made in recent weeks within a short period.
Political developments pressure prices
US President Donald Trump rattled markets by issuing new warnings after peace talks with Iran showed no progress. His comments, including “time is running out,” diminished risk appetite among cryptocurrency investors. Market analyst CryptoRover noted that the US could be preparing for military action against Iran.
Analyst CryptoRover cautioned that the US administration could soon take fresh military steps against Iran and advised investors to remain vigilant.
Over the past three days, Bitcoin has lost as much as 7 percent in value, erasing gains achieved since May 1. Last week, bullish sentiment around inflows to spot ETFs and optimism over the US CLARITY Act had propelled prices as high as $83,000.
Market positions liquidated sharply
As volatility surged, total liquidations on long positions reached $607 million in the last 24 hours, of which $190 million involved Bitcoin alone. Across the broader crypto market, the total liquidation figure soared to $677 million, resulting in heavy losses for many traders.
The ripple effects extended beyond cryptocurrencies. Oil markets also witnessed sudden swings; Brent crude spiked more than 3 percent in a short time to hit $104 before retreating to $101. Analysts attributed this sharp move to the end of US-Russia energy agreements and concerns about supply disruptions in the Strait of Hormuz.
The Capital.com team shared on social media that “WTI jumped above $103 after Trump openly responded to a deadlock in peace negotiations and the end of Russia’s oil sales authorization. Supply risks in the Strait of Hormuz further pushed prices upward.”
Analysts highlight technical levels
Following the decline, technical analysts identified several key support areas for Bitcoin. Analyst CryptoJelleNL pointed out that the resistance at $82,000 and negative divergence in related indexes were triggers for the current pullback.
Market experts underlined the importance of maintaining support at $76,000. If this level fails to hold, the demand zone between $71,000 and $73,000, as well as the local low at $65,000, could become the next focus.
Analysts stressed that $65,000 is the most critical short-term threshold, noting that a slide down to this level is possible. They warned that a reversal pattern forming in this area could signal a further drop of around 16 percent.
A similar correction had previously occurred in April 2025, when Bitcoin was rejected by its 200-day moving average. Experts now emphasize that price movements in the coming days will be shaped largely by global developments and critical technical support points.
