 ▲ Smoke rises over Tehran, Iran |
Uncontrollable war tensions in the Middle East have swept across global asset markets, leaving Bitcoin (BTC) walking a precarious tightrope at the critical support level of $65,700. As extreme risk aversion drives investors toward traditional safe havens such as gold and silver, warnings have emerged that Bitcoin could fall into a deeper slump if it loses this key support.
According to investment outlet FXStreet on March 2 (local time), the aftermath of a joint U.S.-Israel airstrike on Iran has left Bitcoin hovering around $66,400, remaining near the lower end of its month-long trading range amid heavy caution. Foreign media including the BBC reported explosions in Bahrain and Dubai, as well as smoke near the U.S. Embassy in Kuwait, confirming that the conflict is spreading to neighboring countries like wildfire.
This hair-trigger tension has sharply dampened market sentiment, pushing investors into safe-haven assets such as gold (XAU) and silver (XAG), which surged more than 2.5% and 1.8% respectively in Monday’s session alone. Meanwhile, Iran’s Islamic Revolutionary Guard Corps (IRGC) declared a full closure of the Strait of Hormuz, sending international oil prices sharply higher and creating a powerful macroeconomic headwind weighing on risk assets.
QCP Capital cautiously projected in a report that the current situation could follow a pattern similar to Iran’s airstrike episode last June. At that time, Bitcoin fell below $100,000 on weekend strike news but rebounded on Monday and soared to as high as $123,000 within just a few weeks. The firm noted that some options traders are viewing this weekend’s volatility as a betting opportunity for a March rebound in an effort to break a five-month losing streak.
Despite short-term downward price pressure, signs of institutional buying offer a glimmer of hope. According to SoSoValue data, funds that had been flowing out for five consecutive weeks reversed course last week, with a net inflow of $787.31 million into spot Bitcoin exchange-traded funds (ETFs), suggesting renewed institutional appetite for buying the dip.
From a technical perspective, Bitcoin remains above its 50-period exponential moving average (EMA) on the four-hour chart but faces strong resistance at the downward-sloping 100-period EMA at $67,650. While the Moving Average Convergence Divergence (MACD) has turned positive and the Relative Strength Index (RSI) is stabilizing around 50, a break below the $66,500 level could trigger a slide to last week’s low of $65,800, followed by $63,000 and even as low as $58,822 in an increasingly fragile scenario.
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