Bitcoin Drops 8% Weekly Amid Middle East Crisis Fears

Bitcoin (BTC) has recently experienced a surge in short-term bearish sentiment due to the ongoing Middle East geopolitical crisis. The price of BTC dropped below $100k over the weekend and recorded the lowest weekly close at around $101,339. This price movement signals potential short-term weakness, with a midterm target of around $93k. In the weekly timeframe, BTC price has formed a potential macro double-top coupled with bearish divergence of the Relative Strength Index (RSI), an established reversal pattern. If the support level around $93k fails to hold in the coming weeks, a capitulation towards $76k will be imminent in the subsequent months.

Following the heightened crypto volatility, which has resulted in significant liquidations of leveraged long traders, fear of further capitulation remains palpable. The Bitcoin and Ethereum fear and greed indexes have dropped below 50 percent following the recent crypto selloff triggered by the U.S. attack on Iran.

According to Benjamin Cowen, an established crypto analyst, the Bitcoin market will continue to gain more ground over altcoins in the coming months. With Bitcoin dominance having crossed above 65 percent, Cowen thinks the figure will rise further in the near future, potentially even hitting 70 percent. Consequently, the crypto analyst is of the opinion that altcoins will continue to bleed out to the Bitcoin market, thus further delaying the highly anticipated altseason 2025. Most importantly, Cowen highlighted that the wider crypto market, led by Bitcoin will establish a local low around August or September.

Meanwhile, analysts expect the wider crypto market to record a parabolic rally during the fourth quarter of 2025 and potentially extend to the first quarter of 2026. This forecast suggests a significant shift in market dynamics, with Bitcoin potentially dominating the market and delaying the anticipated altseason. The current market conditions, coupled with Cowen's analysis, indicate a bearish short-term outlook for altcoins, with Bitcoin expected to maintain its dominance in the near future.