Bitcoin's RSI at 28 indicates oversold conditions, offering favorable entry points for long-term investors amid rising global geopolitical risks.
Despite $1.2B liquidations, Crypto Fear & Greed Index stays stable at 54, signaling calm sentiment beneath the surface panic selling.
Weak dollar, soft inflation at 2.4%, and increased rate cut odds build a strong macro case for crypto strength in coming months.
Bitcoin price drop triggered a wave of liquidations following rising tensions between Israel and Iran. The crypto market reacted swiftly, reflecting broader risk-off sentiment.
Market Reacts to Escalation With Sharp Sell-Off
On-chain analyst Leshka.eth reported a sharp 5% drop in Bitcoin to $103,000, while Ethereum fell 10% to $2,400. The downturn resulted in $1.2 billion in liquidations across digital assets. This sharp correction was driven by geopolitical concerns, not deteriorating fundamentals.
Despite the short-term pullback, Leshka.eth emphasized that such moves are part of risk-off behavior during global tensions. Historically, these events prompt temporary volatility, with investors shifting to safer assets. However, the crypto market has shown resilience once uncertainty fades.
Macro Trends Support Long-Term Crypto Strength
Underlying conditions in the broader macroeconomic landscape continue to support a bullish outlook for crypto. According to Leshka.eth, the U.S. Dollar Index remains weak even with safe-haven demand. U.S. inflation data came in softer than expected, at 2.4% compared to 2.5%.
Market sentiment now leans toward a 57% probability of a Federal Reserve rate cut. Historically, a weakening dollar supports crypto strength. Data shows that Bitcoin returns an average of 43% during three-month periods following a 5%+ DXY drop.
Even as oil briefly spiked to $75, traders appear to have priced in the move. The Crypto Fear & Greed Index stayed at 54, reflecting stable sentiment despite the selloff.
Bitcoin Shows Oversold Conditions Amid Stable Fundamentals
Technically, Bitcoin now trades in oversold territory, with its Relative Strength Index (RSI) at 28. This indicator suggests potential buying interest from long-term investors.
Leshka.eth also pointed out that while short-term volatility persists, broader trends continue: a weakening dollar, dovish Fed policy, and growing institutional interest in crypto.
Retail investors tend to react to headlines, but long-term participants often view these dips as entry points. With altseason still expected, many are focusing on strategic accumulation rather than short-term panic.
The post $1.2B Liquidated as Bitcoin Drops 5%, But Long-Term Crypto Outlook Strong appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
