- Bitcoin price dropped below $68K amid rising geopolitical tension
- Cup and handle pattern signals a potential $363K breakout target
- Dealer hedging and options activity are increasing volatility
Bitcoin price fell below $68,000 on Tuesday as global markets turned risk-averse. The decline followed rising geopolitical tension linked to U.S. actions involving Iran. Bitcoin price dropped about 2.2% intraday, erasing gains seen when it briefly crossed $70,000. Despite this pullback, analysts continue to track long-term bullish patterns forming on higher timeframes.
Bitcoin Price Pattern Points to $363K Breakout Potential
A chart shared by Crypto Patel on TradingView shows a cup and handle formation on the monthly timeframe. This pattern often signals bullish continuation during long cycles. The “cup” reflects a rounded bottom, while the “handle” forms near resistance levels.
Patel suggests this setup could push the Bitcoin price toward $363,000 if a breakout occurs. He warned that late buyers risk becoming “exit liquidity” for early investors. This term describes traders who enter near the top while others take profits.
From a technical view, the Bitcoin price must hold key levels before any breakout. Resistance remains near $74,000 to $75,000, where rallies have stalled. Weak demand has kept the market in a tight range, limiting upward momentum.
Bitcoin Price Reacts to Geopolitics and Market Structure
Bitcoin price has shown sensitivity to macro events, moving with broader risk assets. Tensions in the Middle East have added pressure across equities, commodities, and crypto markets. Reports of U.S. actions near key Iranian oil routes have raised concerns about supply disruptions.
At the same time, derivatives markets are experiencing increasing volatility. Bitfinex analysts explained how dealer positioning could amplify moves. “Any price drop below $68,000 may trigger programmatic selling,” they said, pointing to a feedback loop effect.
Options activity has created unstable conditions, with hedging flows driving sharp swings. This dynamic makes the Bitcoin price more reactive to sudden changes in sentiment. ETF inflows remain steady, but short-term moves are driven by macro risks.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
