NAIROBI (CoinChapter.com) — The Bitcoin (BTC) price pullback faltered below $61,000 as the Middle East tensions emerged. This was after Iran threatened to launch missile strikes on Israel, which made investors panic and sell risky assets, including cryptocurrency. October has traditionally been a strong month for Bitcoin, but due to geopolitical tensions affecting global markets and putting pressure on the cryptocurrency industry.
Bitcoin (BTC) Takes a Hit as Investors Flee
Bitcoin quickly dumped when the news of Iran’s missile attacks on Israel in response to the recent killings came out. This resulted in Bitcoin’s value dropping from $64,000 to $60,175, marking its sharpest decline in a month.
CoinMarketCap data showed the cryptocurrency lost 4.3% in the past 24 hours, with trading volume surging by 62% to $51 billion, indicating a higher turnover in activity due to increasing fear. The Fear & Greed Index sits at 39, reflecting this cautious sentiment as fear grips the market.
From an on-chain perspective, the In/Out of Money Around Price (IOMAP) metric indicates that the region between $63,510 and $65,323 is a critical resistance zone for Bitcoin. This level is backed by 2.15 million addresses holding 1.27 million BTC, making it a strong barrier compared to the minor support at $60,666.
According to digital asset management firm 10x Research, Bitcoin (BTC) must surpass $66,000 to invalidate the current bearish trend. Without this breakout, analysts suggest a further drop to $59,813 could be likely.
According to Coinglass, over 97,000 traders were liquidated in the last 24 hours. The total liquidation value hit $274.50 million, with Binance seeing the largest single liquidation of $12.66 million on the BTC/USDT pair.
Altcoins Fall Alongside Bitcoin as Ethereum, Solana Suffer Losses
The broader crypto market mirrored Bitcoin’s (BTC) downturn, with the total market cap falling by 2.3% to $2.17 trillion. Ethereum (ETH) dropped 4.72% to $2,365, while Solana (SOL) lost 5.3%, trading around $138.32.
Meme coins also suffered. Dogecoin (DOGE), Shiba Inu (SHIB), and PEPE all fell around 8% over the last day. The crypto market’s increasing link to traditional markets highlights how macroeconomic and geopolitical factors now play a larger role in price movements.
Despite the downturn, Bitcoin (BTC) is still 3.27% higher than it was 30 days ago. However, traders had hoped for a stronger start to October, a month historically known for Bitcoin’s gains, with an average increase of 23% since 2013.
Looking ahead, ZAYK Charts suggested that Bitcoin might retest $52,000 before targeting $80,000. This perspective aligns with insights from Ash Crypto, who noted that Bitcoin’s historical corrections often stem from geopolitical turmoil and regulatory challenges. Since 2016, these downturns have frequently created buying opportunities, with Bitcoin typically rebounding strongly after significant declines.
The ongoing conflict has particularly hurt long positions, with over 70% of the $274.30 million in liquidations coming from traders betting on Bitcoin’s continued rise. Expectations for Bitcoin to break its March high of $73,700 have now shifted as the geopolitical situation unfolds.
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