 ▲ Bitcoin (BTC), investor, plunge/AI-generated image © |
Bitcoin has fallen below the psychological support level of $70,000, entering a critical juncture that could determine the short-term direction of the market, analysts say.
According to CoinMarketCap on March 7 (local time), Bitcoin (BTC) dropped about 3.6% on the day to around $68,200. The decline is largely attributed to broad selling pressure across risk assets, as U.S. stock markets weakened overnight and international oil prices surged.
According to investment outlet FX Leaders, BTC recently climbed as high as $74,000 on Thursday, raising expectations for a rebound. As tensions in the Middle East escalated, some investors turned to digital assets as an alternative to volatile equities, driving upward momentum. However, within a day, both stock and crypto markets fell in tandem, erasing most of the gains.
Market sentiment is also cooling rapidly. Daily trading volume recently declined by about 30% compared to the previous day, indicating a significant drop in investor participation. In the market, $70,000 is seen as a key short-term psychological benchmark for Bitcoin, and whether the price can reclaim this level is viewed as a critical variable for determining its next move.
The current macroeconomic environment is also cited as a factor limiting Bitcoin’s upside. Rising international oil prices and the possibility of a prolonged conflict in the Middle East are heightening global economic uncertainty, potentially dampening investor appetite for risk assets.
Two short-term scenarios are being discussed. If BTC recovers above $70,000, the path toward retesting $74,000 could open. However, if selling pressure intensifies, the price could fall toward the $66,000 level.
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