cryptonewsz.com
The pioneer cryptocurrency Bitcoin is down roughly 1% during the U.S. market hours to trade at $68,202. A primary catalyst to this fall is due to intensifying geopolitical tensions in the Middle East as Iran got an ultimatum from the U.S. government to reopen the Strait of Hormuz. The on-chain data further highlights that market sentiment turned into extreme bearish territory, which historically acted as a precursor for $BTC bottoming. Will Bitcoin price hold $60,000?
$BTC Network Usage Drops to Historic Lows as RVTS Ratio Peaks
The Bitcoin Sentiment Index has crashed into the most negative levels in recent history. This indicator tracks the long-term sentiment trends and indicates underlying market positioning that can be obscured by price volatility in the short-term.
Readings at such depths have recurrently been rediscovered at times of general retail exhaustion. Stories become all too pessimistic, liquidity available runs out following excessive drawdowns, and big players just start hoarding existing coins without notice.
These conditions fit onto iconic technical stages: final selling climaxes, deceptive spring moves, and terminal shakeouts clearing out the remaining weak hands. Previous cycle data indicate that these zones are not often indicators of the initiation of major trend breakdowns. Instead, they are more likely to place exhaustion points at which the continual selling pressure begins to relax.
There are still only limited downsides that can occur, but in any case, the downsides have been lower than the previous legs. A sharp drop of $15,000 is not to be excluded, one that can trigger a last frenzy of market panic.
In the next few weeks, this negative sentiment will probably continue to exist. Prices can move around a tight band or move slightly downwards, forming a situation where Bitcoin seems more and more abandoned and lost.
This step might be as long as the following five months, a period of waning popular attention and apparent lack of involvement. In the meantime, long-term accumulations are being done in the background.
$BTC Signals Retail Exhaustion as Bearish Index Crashes to Extremes
In the last 48 hours, the Bitcoin price witnessed a sharp rejection from $70,350 level and plunged 2.8% to currently trade at $68,382. The pullback was primarily driven by escalating tension in the Middle East as Iran rejected a ceasefire with the US and Doland Trump released a threatening statement warning like “a whole civilization will die tonight”.
As the geopolitical tension continues, the $BTC price could plunge another 8.7% to retest the immediate support of $62,450, followed by $57,000. Even with this downswing, the Bitcoin price remains within the formation of a falling channel pattern in the daily chart. Since October 2025, the coin price has been actively resonating between two parallel trendlines, which acts as dynamic resistance and support for the price.
For buyers to escape the current correction trend, a bullish breakout from the pattern’s resistance trendline around $70,000 is necessary.