Bitcoin’s bearish momentum hit the hardest on technical charts, with the cryptocurrency breaking below all major exponential moving averages early Monday.
Commercial around $76,750, was well below the 20-hour EMA at $77,580, the 50-hour EMA at $78,120, the 100-hour EMA at $78,767 and the 200-hour EMA at $79,350.
MACD indicators added to the downward pressure, with the line at negative 359, the signal at negative 243, and the histogram at negative 116.
The geopolitical shock hits an already weakened market
The slide began Sunday evening after U.S. President Donald Trump posted warning to Iran at Truth Social:
“The clock is ticking for Iran and they better move, FAST, or there will be nothing left of them. TIME IS OF THE ESSENCE!” Trump he wroteafter blocking diplomatic talks and a telephone conversation with Israeli Prime Minister Benjamin Netanyahu.
The post immediately shook the financial market. Oil prices have gone up. The US dollar strengthened. Investors were withdrawing from riskier assets – and Bitcoin was one of the first to feel it.
As of early Monday, Bitcoin was trading at around $76,780, down around 1.55% from the previous 24 hours, according to Coingecko data.
The intraday range was from a low near $76,680 to a high of $78,530. Trading volume exceeded $24 billion. This decline removed approximately $33 billion from Bitcoin’s market capitalization in a matter of hours.
ETF outflows have already set the scene
Iran headlines landed in a market that was already under pressure. American Bitcoin spot ETFs recorded a record one-day net withdrawal of $635 million on May 13, the largest outflow since delayed January.
The figure resulted in a total of $1 billion leaving ETF funds during the week, breaking a six-week streak of inflows. Additional redemptions occurred in subsequent sessions, indicating weakening institutional appetite after a period of robust buying.
Wider conditions made the situation worse. Uncertain inflation data – both PPI and CPI – influenced sentiment. Rising Treasury yields have added to the pressure. Low trading liquidity on weekends amplified every move.
In early May, Bitcoin moved towards the $80,000 to $82,000 range, fueled by optimism around Transparency Act. However, repeated failures to break resistance have left the market exposed. Profit taking has been introduced.
Support and resistance in focus
Traders are currently closely monitoring two key zones. Resistance is between $79,000 and $82,000. Downside support is centered around $74,000 to $76,000.
Rebound relief could still be possible if geopolitical tensions subside – oversold conditions could attract buyers. But if US-Iran standoff deepens or oil prices continue to rise, analysts say the selling pressure is unlikely to ease any time soon.
Featured image from Atta Kenare/AFP via Getty Images|Charly Triballeau/AFP via Getty Images, chart from TradingView
