Bitcoin tanks on Middle East conflict | Credit: Derek Fenech
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Key Takeaways
Bitcoin fell below $105,000 after Israel launched a strike against Iran, wiping out a potential move to a new high.
Net Taker Volume on Binance hit $197M, showing aggressive Bitcoin selling and panic-driven market exits.
On-chain data shows bearish dominance, with a Taker Buy/Sell Ratio below one and BTC trading below its 20 EMA.
Bitcoin’s (BTC) price slid below $105,00 following news of Israeli military action against Iran. Before the development, BTC neared $110,000 again, showing signs that it could notch a new all-time high.
That attempt was short-lived, as rising geopolitical tensions rattled the crypto market and derailed Bitcoin’s momentum.
In this analysis, CCN breaks down how the escalating conflict in the Middle East could shape BTC’s price action and whether a recovery is still possible or slipping further out of reach.
Bitcoin Liquidations Spike Across the Board
Around 23:00 UTC on Thursday, explosions reportedly shook Tehran, Iran’s capital. Later on, Israel claimed responsibility for the strikes.
Following the development, Bitcoin’s price fell to $102,953 with fears that the cryptocurrency could slide below the $100,000 psychological mark. While that did not happen, traders felt the heat.
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CoinGlass data showed that over $450 million in long Bitcoin positions were liquidated in the past 24 hours.
Liquidation occurs when a trader’s balance drops below the required margin to keep a leveraged position open. This triggers the exchange to close the trade and cap further losses automatically.
As Bitcoin’s price slid, the decline wiped out the positions of traders who bet on a continued rally without sufficient margin, indicating how quickly the market can punish overleveraged positions.
In addition to the liquidations, the Bitcoin Net Taker Volume on Binance surged to $197 million, the highest it has reached since June 6.
The metric tracks aggressive market orders, and this plunge shows traders are rushing to offload BTC at market prices instead of waiting with passive bids. In short, the bears are taking charge.
However, CryptoQuant analyst Amr Taha suggests the sell-off triggered by the Israel-Iran conflict may have pushed Bitcoin’s price to a local bottom. He argues that the surge in panic-driven selling could mark capitulation, a precursor to a rebound if market conditions stabilize.
“Historically, extreme net taker sell-offs (below -$160M) have coincided with short-term bottoms, as panic capitulation often exhausts sellers,” The analyst opined.
Despite signs of a possible bottom, on-chain data suggests Bitcoin is not ready for a quick rebound.
The cumulative Taker Buy/Sell Ratio across all exchanges has dropped to 0.96, below the critical threshold of 1. That signals bearish dominance in perpetual swap trades, as more aggressive sellers outweigh buyers.
From a technical point of view, Bitcoin’s daily chart leans bearish. The price has fallen below the 20-day EMA — a sign that short-term support is weakening.
The MACD has also dipped into negative territory, reinforcing the momentum shift toward sellers. If this trend holds, BTC could drop to $100,553.
In a deeper pullback, especially if geopolitical tensions between Israel and Iran escalate, the price might sink as low as $91,672.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
