Bitcoin remains under pressure amid geopolitical tensions: check forecast

The cryptocurrency market was volatile over the weekend due to the ongoing tensions in the Middle East. 

Bitcoin, the leading cryptocurrency by market cap, dropped to the $63k level on Friday but regained its position to briefly trade above $68k. 

It has now dipped by nearly 1% in the last 24 hours and now trades just above $66.

Market volatility will likely persist longer as the US-Iran conflict enters its fourth day.

BTC stays below $67k as Middle East conflict intensifies

The cryptocurrency market has been extremely volatile over the last 72 hours as investors react to the ongoing tensions in the Middle East. 

This conflict began when the United States and Israel teamed up and launched major strikes in Iran, resulting in the death of Ayatollah Ali Khamenei, the Supreme Leader.

Iran responded by attacking US military bases in the region. It also launched attacks on Israel and other key targets, including in Bahrain and Qatar.

The war continues on Monday as Saudi Aramco halted operations at its largest domestic refinery earlier today after a drone strike near the facility.

The attack intensifies concerns about energy supply disruptions across the Middle East, pushing oil prices sharply higher.

The situation remains fluid as conflicting reports emerged earlier today about whether Iran is seeking to resume nuclear talks with the US.

According to The Wall Street Journal, there are fresh efforts to negotiate.

However, Iran's national security chief Ali Larijani said the country won't negotiate.

On Sunday, President Trump said the bombing campaign will continue until objectives are achieved, though The Atlantic reported he agreed to talk with Iran's new leadership.

While commenting on the market conditions, Jeff Mei, chief operating officer at BTSE, said,

"Given that Iran has been isolated from global financial markets for quite some time, we believe that downside risk is limited. Some have been concerned about oil prices and their potential impact on inflation, but the world has been weaned off Iranian oil, and increased supply from OPEC and the US should be enough to stabilise prices."

BTC could extend its correction if it losses key support level

The BTC/USD 4H chart is bearish and efficient as Bitcoin has underperformed over the past few days. 

The leading cryptocurrency has been finding support around the lower consolidation range at $65,729 since Friday, with the price currently hovering around $66,200. 

Bitcoin could extend its correction if it closes below key support

If the bearish trend persists and BTC breaks below the $65,729 support level, it could extend the decline toward Tuesday’s low at $62,510.

An extended bearish scenario will see the bears push BTC towards the $60k psychological support.

The Relative Strength Index (RSI) on the 4-hour chart is 49, below the neutral 50 level, indicating bearish momentum gaining traction. 

The Moving Average Convergence Divergence (MACD) showed a bearish crossover on February 15 that remains intact, suggesting a negative outlook.

However, if the daily candle closes above the $65,729 support, BTC may extend its recovery towards the $71,747 resistance level in the coming hours or days.