Oil price volatility and global market tensions impact cryptocurrencies
The widening oil price gap and increasing market tensions are putting pressure on Bitcoin, which remains a high-risk asset.
In the short term, Bitcoin prices will move according to local liquidity clusters, creating temporary balance points.
Bitcoin [BTC] lost 1.16% while Ethereum [ETH] dropped 2.79% in the past 24 hours as the market faces geopolitical tensions and macro instability. US President Donald Trump called for Iran's unconditional surrender and threatened the Iranian leader, labeling him as an 'easy target', significantly diminishing market confidence.
Oil price volatility, which still depends on the situation in the Middle East, has significantly impacted the global economy. High energy prices could reduce consumer purchasing power, contributing negatively to the cryptocurrency market in the long term.
In this context, it is important to emphasize that the 'extreme greed' sentiment in the cryptocurrency market has eased, returning to neutral levels in May. The US Central Bank's interest rate decision on June 18 was clearly priced in, with market expectations reaching 99.9% regarding the possibility of maintaining the interest rate.
On-chain metrics show that long-term investors are still actively accumulating. However, fears about the potential US military intervention in the Iran-Israel conflict keep the cryptocurrency market in a state of uncertainty, at least in the short term.
Why are cryptocurrencies falling today? Liquidity shapes volatility
Source: BTC/USDT on TradingView
Prices always follow the liquidity attraction principle. Last month, Bitcoin entered a consolidation phase, lacking a clear trend. BTC prices were mainly influenced by news, even reacting sensitively to tweets. A typical example was the dispute between Elon Musk and Donald Trump on June 13.
The subsequent strong volatility waves were quickly reversed, clearly illustrated by the arrows on the chart. These movements reflect the pull of characteristic liquidity zones, where the market focuses on large trades.
Currently, the opening of the month at $104.6 thousand is the main support level. A closing session below $104 thousand – $104.5 thousand would signal the possibility of a drop to $102 thousand or even $100 thousand nearby, opening up zones of reinforcing or corrective price feedback.
Source: TOTAL2 on TradingView
The altcoin market remains in a downtrend, unable to surpass the $1.24 trillion mark. According to technical analysis based on price action models, this area is still a bearish order block resistance zone from February (marked in red). The weak ETH/BTC ratio and the rise of Bitcoin dominance require altcoin investors to patiently monitor and wait for suitable opportunities in the near future.
Some segments, individual coins may shine in the short term, standing out in the crowd. Traders need to watch for small breakout events but should also limit holding these assets too long to avoid risks from swift market reversals.
Source: https://tintucbitcoin.com/why-cryptocurrency-is-falling-due-to-war/
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