Bitcoin falls below $73,000 as renewed US-Iran strikes weaken risk appetite

Bitcoin fell below the $73,000 level on Thursday after renewed clashes between the United States and Iran weakened risk appetite and pushed traders toward defensive positioning.

The cryptocurrency dropped to around $72,500 before recovering slightly to trade near $73,303 at the time of writing, down 3.54% over the past 24 hours.

The decline came after military operations escalated between Washington and Tehran, threatening the fragile truce and weakening market hopes for a near-term peace agreement.

Iran’s Revolutionary Guard said it had targeted a US air base after the United States carried out strikes against Iranian drones and a launch platform near the Strait of Hormuz.

Sharp deterioration in crypto market sentiment

The decline also coincided with a clear deterioration in cryptocurrency market sentiment, as the Crypto Fear & Greed Index fell to 22, returning to the “extreme fear” zone.

Market data showed that more than 166,000 traders were liquidated over the past 24 hours, with total liquidations reaching around $932 million.

Hormuz tensions pressure high-risk assets

The conflict linked to the Strait of Hormuz remains a major concern for markets given its importance as one of the world’s key oil shipping routes.

Oil prices rose again following the latest strikes, recovering part of their previous losses tied to reports of progress in peace talks.

Brent crude climbed around 2.5% to $96.63 per barrel, while US West Texas Intermediate crude rose to around $90.93.

The rise reflects continued market pricing of risks related to disruptions in energy flows, even as prices remain below the highs recorded earlier in the conflict.

The White House also rejected Iranian media reports about a draft understanding that would involve lifting the US naval blockade in exchange for Iran restoring commercial shipping traffic through the Strait of Hormuz within one month, describing those reports as “incorrect.”

US President Donald Trump confirmed that he would not rush into an agreement, warning that Iranian attempts to prolong negotiations would not change his position.

Bitcoin loses a key support level

From a technical perspective, Bitcoin’s structure deteriorated after losing support at the $74,000 level, which has now turned into short-term resistance.

Traders are watching whether the cryptocurrency can reclaim that level to ease selling pressure.

Crypto analyst Ted said Bitcoin failed to hold above the $81,453 level before falling below $78,921 and then breaking beneath the $75,000 barrier, reflecting short-term seller dominance after the recovery attempt failed.

The first support level is currently located between $73,300 and $73,400, the range where Bitcoin is currently trading.

If buyers fail to defend that area, the next major support lies near $70,671.

A break below that level could open the way toward the demand zone between $66,318 and $65,816.

Key resistance levels

On the upside, Bitcoin needs to move back above the $75,000 level before any stronger recovery can begin.

After that, resistance appears near $78,921 and then $81,453.

Analysts believe a daily close above $81,453 could improve the short-term technical outlook and reopen the path toward the $84,000-$85,000 range.

Higher resistance levels are located near $90,235 and then $97,899, although they are not currently viewed as active targets unless Bitcoin first regains the nearer resistance zones.

Slowing network activity raises concerns

On-chain data also showed declining Bitcoin network activity, with the number of active addresses falling 39.8% over two weeks, from 821,000 addresses to just 494,000, according to data published by analyst Ali Martinez.

Declining activity during periods of price consolidation often points to weaker participation from short-term traders.

At the same time, Binance data showed spot buying volumes have been declining for months, meaning fewer traders are aggressively purchasing Bitcoin at market prices, reflecting weak spot demand during the recent recovery attempt.

Forced liquidation risks remain elevated

Funding rates on Binance have returned to positive territory, signaling that derivatives traders still lean toward long positions despite weak price momentum.

When leveraged long positioning rises alongside weak spot demand, the market becomes more vulnerable to forced liquidations.

That was clearly visible in recent trading, as the cryptocurrency market saw nearly $1 billion in liquidations over 24 hours.

Traders believe that if Bitcoin fails to reclaim the $75,000 level, attention will remain focused on the $71,000-$73,000 zone as the key area for potential rebounds.