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Bitcoin (BTC) extended its rebound rally amid the impact of the war but encountered strong resistance near $74,000 and fell back below $71,000. Analysts say the short-term surge triggered by a short squeeze lost momentum as it faced technical resistance and macroeconomic uncertainty.
According to cryptocurrency media outlet CoinDesk on March 6 (local time), Bitcoin rose to as high as $74,000 intraday before buying pressure weakened, leading to a pullback to around $70,987. The move represents a roughly 2.2% decline over the past 24 hours, retracing about one-third of the gains formed during the rebound from $64,000, where prices had fallen due to the war.
The recent rally marked a roughly 15% rebound over five days from last Saturday’s low near $64,000. However, technical analysts noted that the rise stalled at a resistance zone where the 61.8% Fibonacci retracement level overlaps with the 50-day moving average. Such levels are commonly seen as major technical resistance areas where selling pressure concentrates during counter-trend rallies.
Alex Kuptsikevich, Chief Analyst at FxPro, assessed that the sharp surge was driven more by a short squeeze than by renewed market conviction in an uptrend. He explained that investors holding bearish positions had placed stop-loss orders near market prices, triggering a cascade of liquidations that fueled the rapid price spike.
Market structure indicates a relatively clear short-term price range. Exchange data shows a concentration of long leverage liquidation levels around $70,000, with the next major liquidity zone near $64,000. As a result, $70,000 is viewed as a key short-term support level, and if it breaks, a renewed test of support around $64,000 is considered possible.
The macroeconomic environment is also cited as a headwind for cryptocurrencies. Following the Iran war, major Asian stock indices have fallen about 6.4%, marking their worst weekly performance since March 2020. A stronger U.S. dollar and surging oil prices are further creating unfavorable conditions for risk assets. The market is now watching whether Bitcoin can hold the $70,000 support level, seen as a decisive factor for its near-term direction.
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