Crypto Markets Plunge Amid Geopolitical Strikes, Bitcoin Faces Bearish Future Towards $35,000
Crypto Markets Plunge Amid Geopolitical Strikes, Bitcoin Faces Bearish Future Towards $35,000
The cryptocurrency market experienced a sharp downturn following coordinated US and Israeli strikes on Iran, causing panic selling and significant liquidations. Bitcoin briefly dipped to $63,038, Ethereum fell by nearly 9%, and other major altcoins recorded losses of 8-12%. This immediate reaction saw over $128 billion wiped from the total market value and $515 million in liquidations.
Adding to the market's woes, technical analysis indicates Bitcoin has officially entered bearish territory after breaking a long-term support level at $107,000. Analysts project a potential deeper correction to $44,000, with a worst-case scenario bottoming out around $35,000 in 2026, aligning with historical bear market patterns.
Geopolitical Tensions Trigger Broad Market Sell-Off
The cryptocurrency market was hit hard by geopolitical events as the US and Israel launched coordinated strikes on Iran. This military action immediately led to widespread panic selling, with Bitcoin (BTC) dropping as much as 3.8% to $63,038 and Ethereum (ETH) falling by nearly 9%. The impact was felt across the board, with XRP sliding 8%, and Solana (SOL), Dogecoin (DOGE), Cardano (ADA), and Chainlink (LINK) each recording losses of between 8% and 12%. Digital assets, trading around the clock, absorbed the full force of the panic while traditional markets were closed for the weekend. Reports indicate that approximately $128 billion in total market value was wiped from digital assets, with total liquidations across crypto assets hitting $515 million within 24 hours, and the Fear and Greed Index plummeting to 14.
Bitcoin Enters Bearish Territory with $35,000 Target
Compounding the immediate market reaction, a new technical analysis suggests Bitcoin has officially entered a bearish phase. According to crypto analyst Crypto Patel, BTC broke a critical long-term support level at $107,000, signaling a shift in its higher-timeframe structure. This breakdown, visible on weekly candlestick charts, has led to Bitcoin printing lower highs and confirms a bearish momentum. The analysis projects a significant correction, with Fibonacci retracement levels pointing to potential support around $44,000. Should this level fail to hold, the next major target for a market bottom is identified at $35,000. This outlook is supported by historical Bitcoin cycle behavior, where previous bear markets saw declines of 77% to 84% from their peaks before the next major rally. Currently, Bitcoin is trading around $63,740, reflecting a 6% decline in the past 24 hours, further cementing concerns about its downward trajectory.