Bitcoin Plunges to $64,000 Amid Israel-US Strikes on Iran, Altcoins Follow Suit

After a week of bullish momentum, Bitcoin has encountered a significant downturn triggered by escalating geopolitical tensions in the Middle East. The leading cryptocurrency tumbled to $64,000 on the final day of the month, marking a sharp 6% decline within 24 hours.

Geopolitical Catalyst Sparks Market Volatility

The sudden market correction followed reports of joint Israel-US strikes on Iran. According to The Wall Street Journal, Israeli Defense Minister Israel Katz declared an immediate state of emergency, while US officials confirmed their nation's participation in the military action. This development sent shockwaves through cryptocurrency markets, reversing recent gains and triggering widespread liquidations.

Bitcoin briefly touched levels near $63,000, its lowest point since February, raising concerns among traders about further downside potential toward the $60,000 psychological support level.

Massive Liquidations Hit Crypto Markets

The market reaction was swift and severe. Within minutes of the news breaking, approximately $100 million in long crypto positions were liquidated. Total liquidations reached an estimated $136.98 million within a single hour, underscoring the fragility of leveraged positions during periods of heightened uncertainty.

The selling pressure extended across the broader cryptocurrency market, with major altcoins experiencing even steeper losses than Bitcoin.

Altcoins Breach Critical Support Levels

Ethereum (ETH) suffered a decline exceeding 7%, falling below the psychologically important $1,900 level. BNB dropped 5% to $595, while XRP surrendered 8% to trade at $1.20.

Other major tokens posted double-digit percentage losses. Solana decreased 9.8% to $78, while Dogecoin fell 10% to $0.08944. Cardano (ADA) declined 8.72% to $0.2650. These movements represent breaches of key support levels across the board, signaling potential further weakness if selling pressure continues.

Technical Analysis Points to Bearish Momentum Shift

Technical indicators on the BTC/USDT one-hour chart reveal a change of character following the formation of the second consecutive hourly red candle, indicating a momentum shift toward bearish territory.

Analysts have identified a selling zone between $65,857 and $66,336 that could serve as resistance during any retracement attempts. Should the current technical pattern play out, Bitcoin may test the $60,000 level following a technical bounce.

However, if fundamental market conditions improve and sentiment shifts, this selling zone could transform into a demand zone, potentially providing support for renewed bullish momentum. The coming sessions will be critical for determining Bitcoin's near-term directional bias.

Market Outlook Remains Uncertain

The sudden reversal highlights the cryptocurrency market's continued sensitivity to macroeconomic and geopolitical developments. With tensions in the Middle East showing no signs of immediate de-escalation, traders are bracing for potential additional volatility in the days ahead.

Historically, Bitcoin has rarely closed two consecutive months in negative territory, though current conditions present unique challenges that could test this pattern.

Coinasity's Take

This sharp correction demonstrates that cryptocurrency markets remain highly susceptible to geopolitical shocks, despite recent maturation and institutional adoption. The synchronized decline across both Bitcoin and major altcoins, coupled with massive liquidations, suggests overleveraged positions were widespread heading into this event. While technical analysis points to potential support near $60,000, traders should monitor both Middle East developments and broader risk asset sentiment closely. This episode serves as a reminder that diversification and prudent risk management remain essential, particularly during periods of elevated global uncertainty.