Bitcoin extended its decline on Friday, slipping below the $63,000 mark as a combination of geopolitical tensions and persistent ETF outflows weighed on investor sentiment. The leading cryptocurrency has now recorded four consecutive days of losses, raising the prospect of a test of the psychologically important $60,000 support level.
Geopolitical Risks and Market Uncertainty
Escalating tensions in the Middle East, particularly involving US-Iran relations and Israeli strikes over Lebanon, have heightened uncertainty across financial markets. Concerns over the security of the Strait of Hormuz, a critical energy shipping route, have added to the risk-off mood. The cancellation of planned US-Iran talks in Switzerland further compounded the unease, leaving traders cautious.
Bitcoin's decline accelerated after hawkish comments from Federal Reserve Governor Kevin Warsh earlier in the week, which dampened expectations for near-term rate cuts. The broader cryptocurrency market also felt the pressure, with altcoins like Bitcoin Cash (BCH) and Hyperliquid (HYPE) among the worst performers.
ETF Outflows Add to Selling Pressure
Spot Bitcoin ETFs continued to underperform, recording net outflows of $90.70 million on Thursday. BlackRock's IBIT and VanEck's HODL led the withdrawals, signaling waning institutional appetite. This marks a continuation of the trend seen in recent days, as ETF flows have turned negative amid the broader market downturn.
According to CoinGlass data, crypto traders faced significant liquidations on Thursday, with long positions accounting for nearly $363 million in losses, far exceeding the $90.7 million in short liquidations. The imbalance underscores strong bearish momentum and suggests that leveraged bullish bets have been disproportionately affected.
Technical Analysis: Key Support Levels in Focus
From a technical perspective, Bitcoin's short-term outlook remains bearish. The 4-hour chart shows the asset trading below its 20-day Simple Moving Average (SMA) near $66,500, a level it failed to hold earlier this week. The 50-day Exponential Moving Average (EMA) sits at $69,730, while the upper Bollinger Band around $70,810 reinforces overhead resistance.
The Moving Average Convergence Divergence (MACD) histogram continues to contract, and the MACD line is at risk of crossing below its signal line, indicating fading bullish momentum. The Relative Strength Index (RSI) remains near 43, firmly in bearish territory, suggesting that any short-term recovery attempts could face resistance as long as Bitcoin stays below its key moving averages.
If the bearish trend persists, the $60,000 level emerges as the most critical near-term support. A break below that threshold could expose the lower Bollinger Band around $58,330, which may serve as the next major support zone if selling pressure intensifies. For context, similar support dynamics have been observed in other assets, such as SUI holding key support near $0.75 after an 85% decline.
Broader Market Context
The current selloff is part of a wider risk-off move across global markets, with equities and commodities also under pressure. The cryptocurrency market's sensitivity to macro factors has been evident, as Bitcoin's decline mirrors the broader uncertainty. Meanwhile, other digital assets like XRP hovers above $1.05 as bearish pressure tests key support levels.
Traders are closely monitoring geopolitical developments and ETF flow data for signs of a potential reversal. However, with technical indicators pointing to continued weakness, the $60,000 zone remains the focal point for the near term.
This article is for informational purposes only and does not constitute financial advice.
