Bitcoin (BTC) extended its decline on Wednesday, slipping below the $63,000 mark as renewed geopolitical tensions following US military strikes on Iran weighed on risk assets. The world's largest cryptocurrency is now trading around $62,825, keeping the short-term trend tilted to the downside and reigniting concerns about a potential retest of the $60,000 psychological support level.
The latest sell-off comes after Bitcoin failed to reclaim the $64,000 resistance zone, a level that has capped upside attempts in recent sessions. The rejection has reinforced the prevailing bearish sentiment, with BTC now trading below its 50-day, 100-day, and 200-day exponential moving averages (EMAs), positioned at $65,578, $69,226, and $75,229, respectively. This alignment of key moving averages is a classic bearish signal, suggesting that any recovery attempts may face strong selling pressure.
Geopolitical Shockwaves
The US military executed strikes against Iran in retaliation for attacks on three ships in the Strait of Hormuz, escalating tensions in the region. The move has raised concerns about potential disruptions to global energy supplies, with Brent crude oil jumping to $75 per barrel on Wednesday, following a 5% surge the previous day. The geopolitical shock has also weighed on broader markets, with Asian stocks dipping and the Dow Jones Industrial Average adding only modest gains as chip stocks rebounded.
Bitcoin's underperformance relative to traditional safe-haven assets like gold and oil highlights the cryptocurrency's ongoing sensitivity to macro risks. The leading digital asset has lost nearly 1% of its value in the last 24 hours, extending its corrective phase and keeping the $60,000 support level firmly in focus.
Technical Outlook: Mixed Signals
Despite the recent weakness, momentum indicators on the 4-hour chart offer mixed signals. The Relative Strength Index (RSI) is hovering around 49, indicating neutral market conditions with neither buyers nor sellers holding a decisive advantage. Meanwhile, the Moving Average Convergence Divergence (MACD) remains in positive territory, with the MACD line still above the zero level. This suggests that bullish momentum has not entirely evaporated, though it remains too weak to reverse the prevailing downtrend.
If the bearish trend persists, a break below $62,000 could expose the 4-hour transactional liquidity (TLQ) area at $61,242. Failure to defend this support level would open the door to lower demand zones at $59,522 and $57,710 in the near term. Such a move would nullify the previous double-bottom reversal thesis that had been building around the $60,000 area.
Key Levels to Watch
For bulls to regain control, Bitcoin must first reclaim the $64,004 horizontal resistance level, where it recently faced rejection. A successful breakout above that zone would bring the 50-day EMA at $65,578 into focus, followed by the 100-day EMA at $69,226 and the 200-day EMA at $75,229. Beyond that, the longer-term resistance around $84,410 would become the next major hurdle.
Until these levels are reclaimed, the broader technical structure continues to favor sellers. The cryptocurrency remains vulnerable to additional downside if support levels begin to fail, particularly in the context of heightened geopolitical uncertainty. Similar patterns have been observed in other digital assets, such as Ethereum facing a $1,700 support test as market conditions remain fragile.
Investors should monitor the $60,000 level closely, as a decisive break below this psychological threshold could accelerate selling pressure and trigger a broader correction. Conversely, a strong bounce from this area would reinforce the double-bottom pattern and could set the stage for a recovery toward the $64,000 resistance zone.
This article is for informational purposes only and does not constitute financial advice.
