- Bitcoin fell to around $106,000 amid rising geopolitical tensions as President Trump left the G7 summit to address the escalating Iran-Israel conflict.
- Despite strong institutional support, BTC faces potential further declines if the situation worsens and technical resistance levels hold.
Middle East Tensions Rattle Bitcoin Investors
Bitcoin (BTC) dipped to around $106,000 on Tuesday, following a brief recovery the day before. The drop coincides with mounting geopolitical tensions, as U.S. President Donald Trump abruptly left the G7 summit to convene a high-level security meeting in Washington amid the escalating Iran-Israel conflict. While Bitcoin has shown resilience during past crises, traders remain on edge as any further escalation could disrupt global markets.
Despite holding above the key $100,000 psychological level, market sentiment has turned cautious. Trump, through Truth Social, denied initiating any peace talks with Iran, even as reports surfaced of outreach efforts involving Vice President JD Vance and Middle East envoy Steve Witkoff. Analysts warn that a full-blown U.S. military entry could act as a tipping point for risk assets.
Institutional Support Keeps Bitcoin on a Tightrope
Even as global tensions rise, institutional demand for Bitcoin remains strong. Michael Saylor’s Strategy revealed a massive $1.05 billion BTC purchase, adding 10,100 BTC at an average price of $104,080. This brings its total holdings to 592,100 BTC. Meanwhile, Japan’s Metaplanet increased its holdings to 10,000 BTC.
US spot Bitcoin ETFs have also seen consistent inflows, with $408.6 million added on Monday alone, marking six consecutive days of gains. This robust institutional interest has helped cushion Bitcoin’s decline, at least for now.
Bitcoin Price Outlook: Correction Looms Below FVG Zone
Bitcoin is now facing resistance at a Fair Value Gap (FVG) near $108,064. Monday’s mild rebound failed to break above it, and BTC now risks a further pullback. Key support sits at the 50-day EMA near $103,070. A break below that could send Bitcoin retesting the crucial $100,000 support level.
Technical indicators are flashing warning signs. The RSI remains flat around 50, suggesting market indecision, while the MACD has formed a bearish crossover, signaling potential downside.
Still, if BTC reclaims $108,064, bulls may attempt a push toward the all-time high of $111,980. Until then, caution remains the name of the game in a market gripped by geopolitical uncertainty.
