Bitcoin Price Volatility Intensifies Amid US-Iran Conflict
Bitcoin's price took a hit on September 2nd after a series of military strikes between the US and Iran sparked market volatility. The cryptocurrency dipped near $76,000 but managed to recover slightly, closing with a daily loss of just 0.8%.
The price swings were brutal for bullish traders, with Coinglass data showing $91 million in bitcoin long liquidations as price swings punished their bets. This represents over 80% of the nearly $110 million in leveraged positions wiped out on the cryptocurrency.
Analyst Michaël van de Poppe is warning that if selling pressure breaches key support levels at $76,200 and $74,000, it could create a 'tremendous opportunity' for strategic long entries. He notes that bitcoin's failure to break past $77,700 signals a full market recovery remains premature.
The volatility was compounded by the geopolitical risk factor introduced by the renewed conflict between the US and Iran, which had been absent from Bitcoin's August rally. This forced crypto markets to price in a higher risk profile, with some market participants adjusting their lower bounds accordingly.