Bitcoin, Ethereum, XRP, Dogecoin Sink as Iran War Fears Return: Analyst Says Deeper BTC Correction Won’t

Leading cryptocurrencies experienced significant declines on Thursday following reports of escalating tensions between the United States and Iran, which unsettled investors.

Bitcoin fell from a high of $84,000 to an intraday low of $80,989, while Ethereum dropped to $2,372 amid a wave of selling pressure. Other cryptocurrencies, including XRP and Dogecoin, also saw notable downturns.

Additionally, stocks related to the cryptocurrency sector suffered losses, with Strategy Inc. (NASDAQ:MSTR) and Bitmine Immersion Technologies Inc. (NYSE:BMNR) closing down by 5.00% and 6.09%, respectively.

In the past 24 hours, over $470 million was liquidated from the cryptocurrency market, with $434 million coming from bullish long positions, as reported by Coinglass. Bitcoin's open interest experienced a decline of 3.21% during the same period. The sentiment among institutional investors, often referred to as "smart money," shifted to an "extremely bearish" outlook. The overall cryptocurrency sentiment also changed from a state of "Greed" to "Neutral," based on the Fear & Greed Index.

As concerns over renewed conflict resurfaced, major stock indices also fell sharply on Thursday. The S&P 500 dropped 1.21% to finish at 7,663.43, while the tech-heavy Nasdaq Composite fell 2.6% to close at 26,008.86. The Dow Jones Industrial Average managed a slight gain of 0.02%, ending the day at 52,867.98.

Investor anxiety was heightened by reports suggesting that the U.S. and Israel had developed plans for renewed military action against Iran following the midterm elections. In related comments, President Donald Trump stated that the U.S. is not currently engaged in negotiations with Iran, asserting, “We are going to have something one way or the other that’ll happen fairly soon.”

Michaël van de Poppe, a prominent cryptocurrency analyst and trader, indicated that Bitcoin is currently in a "no man’s land" and suggested that a deeper correction would not be unexpected. He outlined potential long setups that involve a liquidity sweep below $80,000, which could target the $78,400-$79,700 range, or a bullish invalidation if the price breaks above $82,900, which could lead to new yearly highs.

Rekt Capital, another well-known cryptocurrency analyst, highlighted Bitcoin's inability to retest the $83,400 level as support after closing above it, which led to a breakdown from the targeted range of $83,400-$87,000.

This significant market activity and the accompanying geopolitical concerns illustrate the volatility and uncertainty that continue to characterize the cryptocurrency landscape.

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