Bitcoin price fell below $73,000 on Thursday as renewed U.S.-Iran hostilities weakened risk appetite and pushed traders back into defensive positioning. BTC dropped to about $72,500 before recovering to near $73,303 as of press time, down 3.54% in the last 24 hours.
The decline followed fresh military actions between Washington and Tehran, which tested the fragile ceasefire and reduced market hopes for a near-term peace agreement. Iran’s Islamic Revolutionary Guard Corps said it targeted a U.S. air base after U.S. strikes hit Iranian drones and a launch site near the Strait of Hormuz.
The latest move also came as crypto sentiment weakened sharply. The Crypto Fear & Greed Index fell to 22, returning to the “Extreme Fear” zone. Market data showed more than 166,000 traders were liquidated over the past 24 hours, with total liquidations reaching about $932 million.
US-Iran Strikes Pressure Risk Assets
The conflict around the Strait of Hormuz remains a key market concern because the waterway is one of the world’s most important oil transit routes. Oil prices rebounded after the fresh strikes, reversing prior losses linked to reports of progress in peace talks.
Brent crude rose about 2.5% to $96.63 per barrel, while West Texas Intermediate climbed to about $90.93. The rebound showed that traders are still pricing risk around energy flows, even as crude remains below the highest levels seen earlier in the conflict.
As we reported, the White House also rejected Iranian state media claims about a draft memorandum of understanding. The reported draft said the U.S. would lift its naval blockade and that Iran would restore commercial shipping through the Strait of Hormuz within one month. U.S. officials called the report false.
President Donald Trump said he would not be rushed into a deal and warned that Iran’s efforts to delay negotiations would not change his position. The uncertainty added pressure to global equity futures and crypto markets, both of which had been reacting to changing headlines around the peace process.
Bitcoin Price Loses $74,000 Support
Bitcoin’s technical structure weakened after BTC lost the $74,000 support zone. That level now becomes short-term resistance, and traders are watching whether Bitcoin can reclaim it to reduce bearish pressure.
According to crypto analyst Ted, the BTC price rejected near $81,453 before slipping below $78,921 and then breaking under $75,000. This sequence shows that sellers have taken control in the short term after the failed recovery attempt.
Source: X
The first support zone is near $73,300 to $73,400, where BTC is currently trading. If buyers fail to defend this area, the next major level sits near $70,671. A break below $70,671 would weaken the structure further and could open the way toward the $66,318 to $65,816 demand zone.
On the upside, the Bitcoin price needs to move back above $75,000 before a stronger recovery can develop. Above that, resistance sits near $78,921 and $81,453. A daily close above $81,453 would improve the short-term structure and could allow BTC to revisit the $84,000 to $85,000 range.
Higher resistance remains near $90,235 and $97,899, but those levels are not active targets unless Bitcoin first regains the lower resistance zones.
Bitcoin On-Chain Activity and Leverage Raise Caution
Bitcoin network activity has also cooled. Data shared by analyst Ali Martinez showed active addresses fell 39.80% over two weeks, dropping from 821,000 to 494,000. Lower activity during price consolidation often shows reduced participation from short-term traders.
At the same time, Binance market data shows a fragile setup beneath the surface. Taker buy volume has been falling for months, meaning fewer traders are aggressively buying Bitcoin at market prices. This points to weaker spot demand during the recent recovery attempt.
Source: CryptoQuant
Funding rates on Binance have moved back into positive territory, showing that derivatives traders are still leaning long despite falling price momentum. When leveraged long positioning rises while spot demand weakens, the market can become vulnerable to forced liquidations.
That setup was visible in the latest market move, with nearly $1 billion in crypto liquidations reported over 24 hours. If Bitcoin fails to regain $75,000, traders may continue watching the $71,000 to $73,000 area as the key zone for a bounce.
