Bitcoin (BTC) suffered a sharp sell-off on April 7, sliding below the critical $68,000 support level and hitting an intraday low of $67,724. The downturn came just 24 hours after Bitcoin had briefly challenged the $70,000 resistance zone, marking a swift reversal in sentiment. The trigger was a dramatic escalation in the Middle East: joint US and Israeli airstrikes on multiple Iranian civilian infrastructure targets, including power grids, railways, and oil facilities.
Geopolitical Shockwaves Rattle Global Markets
Reports confirmed that American and Israeli forces conducted the strikes on April 6–7, as President Donald Trump’s ultimatum to Tehran approached its deadline. Iran largely rejected the US diplomatic demands, leaving military action as the next step. The news immediately triggered a global flight to safe-haven assets. WTI crude oil briefly spiked to $117 per barrel before settling near $113. Analysts warn that if Iran retaliates by closing the Strait of Hormuz, a prolonged oil supply crunch could drag major economies into a deep recession. Stock markets also tumbled, while Bitcoin and other cryptocurrencies mirrored the broader risk-off mood.
Bitcoin Technical Breakdown and Liquidations
From a technical perspective, Bitcoin’s failure to sustainably break above $70,000 left the door open for bears. Two failed attempts at the psychological level were followed by heavy selling, pushing prices under $68,500 and eventually to the $67,724 low. By mid-session, BTC had recovered slightly to trade around $68,500, but momentum remained weak across all timeframes. According to Coinglass data, the recent volatility resulted in $60.63 million in total liquidations, predominantly long positions. This contrasts sharply with the previous session, when a short squeeze wiped out $145 million in bearish bets.
Market participants are now watching for the next catalyst. A further deterioration in US-Iran relations could drag Bitcoin toward $65,000 or lower, while any diplomatic breakthrough might allow bulls to retest the $70,000 resistance. For now, Bitcoin remains stuck in a risk-off environment dictated by geopolitical headlines.