- Bitcoin’s 5.2% price drop triggered $312 million in daily liquidations, with long positions suffering $287 million in losses.
- The drop was likely caused by Middle East tensions between Israel and Iran, as well as Bitcoin’s rejection at the $70,000 price level.
- Traders expect the accumulation trend and downward channel to end by September, with the possibility of a US interest rate cut in the same month adding to investors’ expectations.
The price of Bitcoin has dropped 5.2% in the last 24 hours, triggering over $312 million in liquidations and weighing on the broader crypto market. This pullback comes as geopolitical tensions flare in the Middle East.
Price Drop and Liquidations
Bitcoin fell below the $70,000 level after facing rejection there last week. The price decline to around $66,500 has liquidated $312 million in crypto positions on exchanges.
Most of the liquidations affected long positions, totaling $287 million in losses. Bitcoin longs saw $696 million liquidated, while Ethereum long positions accounted for $723 million of the total.
The sharp price drop appears driven by escalating tensions in the Middle East between Israel and Iran. Iran’s leader reportedly ordered a direct attack on Israel in retaliation for Israel’s alleged assassination of a former Palestinian prime minister.
Technical Analysis
According to analysis by trader Rekt Capital, Bitcoin remains stuck in a downward price channel on the daily chart. This channel could see Bitcoin pull back towards $55,000.
Rekt Capital believes this current accumulation phase that formed the channel will end by September. The possibility of a U.S. interest rate cut next month adds to expectations of an upside breakout.
Market Outlook
The geopolitical turmoil combined with technical resistance near $70,000 led to the latest BTC price decline. But Rekt Capital and other analysts anticipate the current consolidation to give way to renewed upside momentum later this year. An improving macroeconomic backdrop with potential rate cuts could fuel Bitcoin’s next leg higher.
