Bitcoin slid 1.4% on Monday to $72,700, erasing a key support level as the U.S. bombed military sites in Iran and Tehran launched a retaliatory attack on an American air base. The immediate flight to safety swept through crypto, triggering panic selling that pushed Bitcoin below the 100-day simple moving average for the first time in weeks.
Why the selloff hit crypto
Markets don't love sudden escalation. The U.S. strikes on Iranian military targets – and Iran's quick response against a U.S. air base – sent a risk-off signal across asset classes. Crypto, still a high-beta bet in most portfolios, took the brunt. Oil prices jumped on the supply-side fear. That didn't help Bitcoin, which often trades alongside equities during macro shocks.
Technical damage
Losing the 100-day SMA is a concrete blow. For traders who lean on chart levels, that line had held since April. Breaking it opens up the next support zone around $70,000, though nothing says the selling stops there. Volume spiked during the afternoon drop, suggesting forced liquidations rather than steady accumulation.
What could happen next
The conflict remains fluid. No ceasefire talks have been announced. Oil's continued rise would keep pressure on risk assets. Bitcoin's next move likely depends on whether diplomatic channels open or the fighting widens. For now, the 100-day SMA sits around $73,000 – a level that, if reclaimed, would calm nerves. If not, the selloff could deepen.
