Bitcoin Drops 2.1% to $104,000 Amid Geopolitical Tensions

Bitcoin’s recent rally has come to a halt, with the asset dropping to just above $104,000 following a 2.1% decline over the past 24 hours. This movement suggests a potential shift in short-term market momentum, as traders are increasingly choosing to exit their positions.

While the broader cryptocurrency market has also experienced similar pullbacks, Bitcoin’s trajectory is under closer scrutiny due to its significant influence on overall market sentiment and structure. Analysts are examining how external factors, particularly geopolitical developments, are affecting trading behavior. One notable event is the reported military engagement between Israel and Iran on June 13, which triggered sell pressure across high-risk assets, including digital currencies.

Amid these events, key metrics on Binance, particularly the Net Taker Volume, indicate increased sell-side dominance. This suggests that short-term volatility may persist. According to on-chain analyst Amr Taha on CryptoQuant’s QuickTake platform, Bitcoin’s Net Taker Volume on Binance fell to -$197 million, the most negative reading since June 6. This metric compares aggressive selling to aggressive buying, indicating heightened urgency among traders to sell at market prices, bypassing limit orders. The seven-hour moving average (7HMA) has remained in negative territory since June 12, reinforcing the current downward pressure.

Historically, such extremes in net taker volume have been linked to local price bottoms, as they often signal panic-induced capitulation by retail and overleveraged traders. Taha highlighted that a similar event occurred on June 6, followed by a 4% rebound in Bitcoin’s price within 24 hours. The implication is that while aggressive selling may signal weakness, it also presents conditions that have previously preceded price reversals.

Taha also pointed to the geopolitical backdrop, specifically the sudden escalation between Israel and Iran, as a major catalyst for recent market behavior. News of the strike led to a surge in liquidation activity, especially among long-leveraged positions. The correlation between the timing of the conflict and the spike in Binance sell volume suggests that traders are reacting to broader market uncertainty, contributing to downward momentum.

Despite this, Taha still views these conditions as potentially bullish in the medium term. Heavy selling often flushes out weaker hands, creating opportunities for long-term holders or institutional participants to accumulate positions at lower prices. Taha suggests that while the short-term outlook remains volatile, the current setup resembles previous recovery phases, marked by contrarian buying and reduced selling pressure.