Bitcoin extended its decline early Monday as traders reacted to renewed geopolitical tensions between the United States and Iran, with the world’s largest cryptocurrency approaching the $62,000 mark during Wall Street’s opening session.
US-Iran conflict weighs on markets
Heightened concerns over potential escalation in the ongoing standoff between Washington and Tehran influenced global risk sentiment. The Nasdaq Composite Index fell by 1% in early trading, while oil prices remained elevated, with West Texas Intermediate (WTI) crude trading near $75 per barrel.
Speaking on Fox, US President Donald Trump suggested that the United States would increase its presence in the Strait of Hormuz, an essential route for international oil shipments that Iran recently blocked. Trump remarked, “We’re going to keep the strait, and we’ll probably run it. We’ll become the guardian of the strait. Maybe we’ll call it the ‘guardian angel’ of the strait. And we should be reimbursed for that.”
US President Donald Trump stated that the United States intends to secure and oversee the Strait of Hormuz, underlining the country’s willingness to act as a safeguard for the vital maritime corridor.
Rising geopolitical stress pushed investors toward cash and traditional safe havens, putting additional pressure on major digital assets like Bitcoin.
Bitcoin faces selling as short interest rises
Data from TradingView indicated that BTC/USD steadily retreated toward $62,000, as several market participants pointed to substantial short positions opening during the US pre-market hours. Analysts described the latest Bitcoin price action as “very weak,” with sellers maintaining control following an initial downturn at the start of the week.
JDK Analysis, a crypto analytics account, observed, “Massive shorting into this pre NY-open drop. Price is now sitting directly at mVWAP, a key level bulls need to defend!” This level, known as the volume-weighted average price (VWAP), aggregates trading activity across exchanges and offers insight into important support and resistance zones.
Mini dictionary: mVWAP (multiple Volume-Weighted Average Price) is a technical indicator that tracks the average price an asset has traded at throughout the day, adjusted by trading volume. Traders use mVWAP to identify key support and resistance levels in volatile markets.
JDK Analysis warned that if selling persists and the VWAP level fails to hold, Bitcoin could revisit the $60,000 support area. Meanwhile, open interest continued to rise as commentators such as Exitpump highlighted what they called a “crazy amount of aggressive shorting.”
Bulls aim for recovery and $70,000 target
Despite the current weakness, some traders maintain a positive outlook for Bitcoin’s medium-term direction. Trader Roman, who shifted to a more bullish stance, emphasized technical indicators showing signs of downside exhaustion, including the relative strength index (RSI) and volume metrics.
Roman expressed optimism for a rebound, suggesting that while a move higher could materialize, the timing and structure of the recovery will be critical.
Several market watchers have maintained forecasts for BTC to revisit the $70,000 region, though opinions remain divided over how quickly the recovery may occur. Cointelegraph previously noted that some analysts expect further upside in the near term, but many anticipate a more pronounced bottoming process in the third quarter.
