Bitcoin Drops 2.4% to $106,248 Amid Geopolitical Uncertainty

Bitcoin (BTC) has experienced a recent decline, dropping from $108,900 to approximately $106,600. This price movement signals a shift in market momentum, with increased selling pressure near key resistance levels. The SuperTrend indicator has flipped red, indicating that short-term bulls have lost control. A confirmed sell signal is highlighted at the $108.9K mark, with a key resistance zone identified between $107,500 and $108,200. Support levels have formed between $106,000 and $105,200, with another demand pocket near $104,800. Market sentiment has turned cautious as BTC now trades below a major trendline.

Historical data suggests that Bitcoin often experiences short-term dips during geopolitical conflicts but tends to rebound strongly afterward. Analysts have cited past events such as the Crimea annexation, US–Iran tensions, and the Ukraine war as examples. In each case, Bitcoin faced a brief sell-off followed by a strong recovery within weeks or months. For instance, during the Crimea annexation in 2014, Bitcoin dipped by 30% but bounced back by 60% within two months. Similarly, during the US–Iran tensions, Bitcoin recovered 22% within a month after an initial 7% drop. The most recent example is the Israel–Hamas conflict in October 2023, where Bitcoin fell 7% to $27,800 but recovered 22% to $34,000 within a month. Similar price action occurred during the Red Sea tensions, where BTC dipped 6% before bouncing 15% by February.

Market data shows Bitcoin trading at $106,248, down 0.64% in 24 hours. Despite the drop, trading volume surged by over 47% compared to the previous day, suggesting increased market interest as BTC approaches key support levels. Traders are closely watching $105,200 as a crucial level. A breakdown below could open the path toward $104,800. On the flip side, reclaiming $107,200 may allow bulls to regain short-term control. Technical analysts have noted the need for Bitcoin to hold above $106,000. Failing to do so may confirm a trend breakdown and bring more downside. Bulls are trying to defend the area, but pressure is building from overhead resistance zones.

Analysts are now closely tracking the $106,000 level, which may determine the next direction. Increased liquidation activity and rising volume are also shaping the sentiment around Bitcoin’s price movement. The situation remains fluid, with analysts weighing short-term bearish signals against historical recovery trends. The next move for Bitcoin will likely depend on whether demand holds at the current volume shelf or collapses under mounting sell pressure. If $106,000 fails to hold under rising liquidation pressure, analysts see $104,800 as the next key level.