Bitcoin recovered to $67,402 after falling to its lowest level since February at $65,112 on the first day of the week. This decline is attributed to the sudden increase in geopolitical risk that comes with the direct involvement of Iran-backed Yemeni Houthis in the conflict in the region. This atmosphere in the cryptocurrency market led to the $ 65,200 level standing out as a critical support for Bitcoin.
Geopolitical developments and market impacts
The Houthis in Yemen are known to be Iran’s long-time allies. As the tension in the region grew, Houthi forces opened a new front to the conflict outside the US-Israel line, creating uneasiness in international markets. The Houthis’ influence on the Bab el-Mandeb Strait, a crucial sea passage, has increased uncertainty on trade routes.
Following the developments during the night, not only the participation of the Houthis, but also the dispatch of additional American troops to the region and the news that the USA was evaluating various military options increased the tension. In this atmosphere, Iran carried out attacks on two separate aluminum production facilities, affecting industrial chains. After the said step, the price of aluminum increased by 6 percent, and the barrel price of Brent oil increased by approximately 2.5 percent, reaching 115 dollars. In Asian markets, South Korea’s reference index decreased by 3.2 percent and Japan’s Nikkei index decreased by 3.4 percent.
In this strong fluctuation environment, it was noteworthy that Bitcoin held in the range of $ 65,000-67,000. While there was a distinct sense of fear in the crypto markets, it was observed that some large investors were buying at these levels.
Technical outlook and Bitcoin’s critical support level
The $65,000 level forms a critical support line that Bitcoin has tested twice since the US-Israeli operations in late February. The harsh sales at that time caused large-scale liquidations in the market. In the last five weeks, Bitcoin has gradually increased from 64,000 to 70,500 dollars, but with the latest tension, this balance has been broken.
On the technical side, the 50-day moving average became resistance at $67,000, limiting the upside. The fact that the relative strength index was close to oversold created the impression that the momentum in the market was weak. Additionally, funding rates turned negative for a short time as investors who opened positions with high leverage were liquidated. However, the fear and greed index remains low, indicating a backdrop of weak market sentiment.
The main question in the market for now is whether the $65,000 level can form a permanent base under geopolitical pressure or whether resistance at this level will only lead to a temporary recovery. Whether institutional investors will continue to buy at this level will shape the course of the coming days.
