Bitcoin Drops 5% on Iran Conflict News, Tests $102,500 Support

Bitcoin's price experienced a notable decline following the emergence of news regarding the conflict in Iran. The cryptocurrency briefly tested a key support zone near $102,500 before showing signs of a short-term rebound. This price movement aligns with the 50-day Exponential Moving Average (EMA) and a historical demand zone, which has previously exhibited strong buying interest. The current price action suggests that a daily close below $102,000 could signal further downside potential, potentially leading to a retracement toward $98,000.

Market participants are closely monitoring the situation, as the next directional move for Bitcoin could be influenced by developments in the region. The Accumulation/Distribution (A/D) line, which provides insights into the volume flow and positioning of larger market participants, remains steady at 12.68 million. This stability indicates that despite the recent market turbulence, there is still significant interest from large-scale investors.

According to a tweet from Crypto VIP Signal™, Bitcoin's price dropped sharply after news of the conflict in Iran surfaced. The price tested a lower support level before recovering slightly. The tweet highlighted the importance of monitoring the situation, as further escalation could influence market movement. The tweet also pointed to $103,000 as a critical level, suggesting that a break below this threshold could send the price toward the next support range between $100,000 and $101,000. The price response in the coming sessions may depend on developments in the region.

The BTC daily chart shows the price testing a support range between $102,500 and $104,000. This zone aligns with the 50-day EMA, currently positioned at $102,496, and a historical demand area previously marked by strong buying interest. Bitcoin has shown a sequence of lower highs since its peak near $112,000 in late May. Despite a recent decline, the price has not closed below the 50-EMA. If the current level holds, there is room for a move back toward $107,000 or a retest of $112,000. A breakdown below the highlighted zone may lead to further retracement toward $98,000.