Bitcoin Plummets 10% to $93,960 Amid U.S.-Iran Tensions

Bitcoin (BTC) has been experiencing a notable downtrend, with its price falling below $100,000 following U.S. military actions in Iran. This geopolitical event triggered extensive market liquidations, causing significant shockwaves throughout the cryptocurrency market. The immediate trigger for this market crash was a major geopolitical event: U.S. airstrikes on Iranian nuclear sites. This attack escalated fears of a broader conflict in the Middle East, leading to a global "risk-off" sentiment. This sentiment prompted investors to sell off riskier assets, including cryptocurrencies, in favor of safer options such as gold and the U.S. dollar.

As a result of this geopolitical turmoil, over $636 million in crypto leveraged positions were liquidated. Bitcoin (BTC) was one of the hardest hit, plummeting sharply to $100,000 before managing a partial recovery. Despite this bounce, the overall market sentiment remains fragile. Ethereum (ETH) also faced heavy selling pressure, falling over 10% in a single day to around $2,196. XRP, another major cryptocurrency, dropped nearly 9% to trade at $1.97. Other cryptocurrencies like Solana (SOL), Cardano (ADA), and Dogecoin (DOGE) also suffered losses ranging from 7% to 15%.

Analysts warn that unless tensions between the U.S. and Iran ease, cryptocurrencies are likely to remain under pressure. The market's focus is now on whether Bitcoin can hold above the $100,000 support level. If it fails to do so, further losses could drag the market even lower. The Crypto Fear & Greed Index currently sits at 40, indicating a neutral sentiment, but this could quickly swing toward "Fear" if geopolitical tensions intensify in the coming days. The crypto market is currently more influenced by geopolitical events than by technical patterns, and until the situation stabilizes, volatility is expected to remain high.

Bitcoin's price has been trending downwards, currently at $93,960, approaching a daily support line for the seventh time. There is an extremely high probability that this trend line will break, which could take Bitcoin even lower. A sustained hold above this level could trigger a sharp recovery, potentially reigniting momentum toward previous highs. However, the market's focus is now on whether Bitcoin can hold above the $100,000 support level. If it fails to do so, further losses could drag the market even lower.

The uncomfortable truth about Bitcoin is that it isn't pumping, and one of the reasons is that El Salvador made it legal tender. This move has not had the expected positive impact on Bitcoin's price, and the market is currently more influenced by geopolitical events than by technical patterns. Until the situation stabilizes, volatility is expected to remain high, and the market's focus is on whether Bitcoin can hold above the $100,000 support level. If it fails to do so, further losses could drag the market even lower.

Despite the bearish pressure, the charts reveal a potentially bullish technical pattern that may hint at a rebound. Zooming into the daily chart, BTC seems to be forming a classic bull flag and pole pattern — a continuation setup that often signals a pause before further upside. The "pole" was formed by the sharp rally in late May through early June, followed by the current descending consolidation forming the “flag.” Today’s price action has pushed BTC right down to the descending support trendline near $98,600, which is a critical zone for bulls to defend. If this level holds, the pattern remains valid — and a breakout from the upper flag boundary could set the stage for a retest of the $108K level.

If bulls defend the $98,600 trendline, BTC could rally toward the descending resistance line near $108,000, potentially confirming the bull flag breakout and resuming the uptrend. If the support fails, however, the pattern would be invalidated. BTC could then slide further, with the next major support sitting around $94,000. With volatility heightened due to ongoing global conflict and market uncertainty, traders should keep a close eye on daily candle closes around the $98K region for confirmation of the next move.