Photo Credit: dailycoin.com
Bitcoin fell below $77,000 on Tuesday, November 3, as renewed US military strikes on Iran heightened geopolitical tensions, pushed oil prices higher and triggered more than $380 million in cryptocurrency liquidations.
The global cryptocurrency market declined by 1.7% over the previous 24 hours, reflecting growing investor caution following reports of US military operations targeting Iran’s Qeshm Island near the Strait of Hormuz.
The strikes raised concerns about further escalation in the Middle East and potential disruptions to regional energy supplies, prompting investors to reduce exposure to riskier assets.
Oil prices climbed as hopes for an immediate diplomatic resolution weakened. Brent crude rose more than 1% to trade above $106 a barrel, reversing some of the previous session’s steep losses.
Reuters+1
Bitcoin and Ethereum Fall as Crypto Liquidations Exceed $382 Million
Bitcoin declined 1.9% over 24 hours to approximately $76,950, extending its weekly losses to around 4% as geopolitical uncertainty weighed on cryptocurrency markets.
Other major digital assets also traded lower. Ethereum fell 1.2% to $2,265, while Solana dropped 2.5% to $92.25, reflecting widespread selling pressure across the sector.
The market downturn triggered substantial liquidations among leveraged cryptocurrency traders.
According to data cited from CoinGlass, approximately $382.48 million in leveraged positions were liquidated across cryptocurrency exchanges during the previous 24 hours.
Bullish traders suffered the heaviest losses, with long positions accounting for $341.81 million of the total. Bitcoin-related liquidations approached $100 million as falling prices forced leveraged traders to close their positions.
The wave of liquidations added further pressure to an already fragile market, accelerating declines across several major cryptocurrencies.
Weak Bitcoin Demand Adds to Market Uncertainty
Beyond geopolitical developments, market analysts have identified weakening demand and persistent selling pressure as additional challenges for Bitcoin.
According to cryptocurrency analytics firm CryptoQuant, Bitcoin’s recent recovery lost momentum after reaching approximately $78,700 on Monday.
The temporary rebound followed renewed optimism surrounding potential negotiations between Washington and Tehran, alongside Binance’s gradual restoration of withdrawals after a major cryptocurrency security breach.
However, Bitcoin failed to sustain its recovery above $79,000. A subsequent attempt to regain momentum also weakened as the technology-heavy Nasdaq index ended the session 1.1% lower.
CryptoQuant data indicated that Bitcoin had fallen below the $77,140 average acquisition price of investors holding the cryptocurrency for one to three months.
Trading below this level could encourage some short-term holders to sell during price rebounds, creating additional resistance to recovery.
The firm’s Apparent Demand indicator also moved into negative territory, falling below its 30-day average and signalling weaker buying interest.
Although spot-market purchases continue, analysts noted that buying activity has not been sufficient to offset selling pressure from futures markets and forced liquidations.
Bitcoin Price Outlook: Key Support and Resistance Levels
CryptoQuant analysts identified the $76,600 to $76,700 range as an important near-term support area for Bitcoin.
A sustained move below this zone could expose the cryptocurrency to further downside pressure, particularly if market sentiment continues to deteriorate.
For a stronger recovery, Bitcoin would first need to regain the $77,100 to $77,200 range before advancing toward the next resistance area between $77,400 and $77,600.
Analysts believe that a reduction in forced liquidations, combined with consistent spot-market buying, would improve the chances of stabilisation.
However, uncertainty surrounding US-Iran relations, rising energy prices and the November 3 US midterm elections continues to influence investor sentiment.
With geopolitical tensions unresolved and cryptocurrency demand showing signs of weakness, Bitcoin and the wider digital asset market remain vulnerable to further volatility in the coming sessions.
