Bitcoin selling pressure intensifies as price drops 5% amid geopolitical tensions

Bitcoin is facing relentless Bitcoin selling pressure as investors flee risk assets following escalating Middle East tensions. The cryptocurrency has plunged 5% in 24 hours, with technical charts now flashing red. Analysts warn that the selling pressure could worsen if geopolitical instability persists, potentially dragging BTC below critical support levels.

Geopolitical chaos fuels Bitcoin selling pressure

The immediate trigger for the latest Bitcoin selling pressure was Israel’s retaliatory strike on Iran last Friday, which sent shockwaves through global markets. BTC, often sensitive to macroeconomic turmoil, saw spot outflows spike as traders shifted capital to safer havens.

“Whenever traditional markets panic, crypto gets hit first,” said Clara Lin, a strategist at BlockTower Capital. “This selling pressure isn’t just speculative, it’s institutional portfolios rebalancing away from risk.”

At press time, BTC hovers near $105,000, down 3% this week. The coin’s third consecutive red candle on daily charts suggests the selling pressure has momentum.

Technical breakdown: RSI and MACD confirm bearish shift

The Relative Strength Index (RSI), a key momentum gauge, has dipped below 50, a threshold separating bullish and bearish territory. Current readings at 48.85 indicate the Bitcoin selling pressure is overpowering buy-side demand.

According to TradingView, the Moving Average Convergence Divergence (MACD) paints a grimmer picture. The MACD line (blue) has crossed below the signal line (orange), a classic sell signal. “This alignment suggests the Bitcoin selling pressure could accelerate,” noted Markus Thielen, head of research at Matrixport.

Critical support levels at risk

With the Bitcoin selling pressure showing no signs of easing, traders are bracing for a test of the $103,000 support floor. A breach could open the door to $101,610—a level last seen in early June.

However, not all analysts are convinced the downturn will persist.

“Geopolitical-driven sell-offs often reverse quickly,” argued Rajat Soni, a derivatives trader at Deribit. “If tensions de-escalate, we could see a short-covering rally back to $106,500.”

Institutional exodus compounds Bitcoin selling pressure

Data from CoinShares reveals $642 million in crypto fund outflows last week—the highest since March. Grayscale’s BTC trust alone saw $300 million withdrawn, amplifying the Bitcoin selling pressure.

“The Middle East conflict is a catalyst, but the real driver is profit-taking after Q1’s 60% rally,” said Vetle Lunde of K33 Research.

“Miners are also contributing to the selling pressure; they’ve offloaded 3,000 BTC this month.”

Way forward

Market sentiment hinges on two factors:

1. Geopolitical developments: Further escalation could extend the selling pressure.

2. U.S. macroeconomic data: This week’s CPI report may shift Fed rate expectations, influencing crypto liquidity.

For now, the path of least resistance remains downward. As long as the Bitcoin selling pressure dominates, bulls will struggle to regain control.