Bitcoin fell below $80,000 twice over the weekend, touching lows of $79,200 and $79,300. The decline occurred as fresh military strikes in the Middle East rattled global markets and prompted traders to reassess positions across asset classes.
Over the past 24 hours, approximately $34.63 million in Bitcoin positions were liquidated, with about 78% of those representing long positions. Crypto markets reacted quickly to the geopolitical developments while traditional stock markets remained closed, as traders shifted into cash and dollar-pegged stablecoins.
Oil prices climbed on conflict-related concerns about energy routes. Higher oil could eventually feed into consumer inflation data, potentially complicating the Federal Reserve's interest rate decisions ahead.
Bitcoin has formed lower highs and lower lows over the past three weeks. Analysts point to a support zone between $75,000 and $77,000 as a critical level if selling pressure continues. The $82,000 level represents key resistance, with traders monitoring whether Bitcoin can recover above that zone.
Data from CryptoQuant reveals diverging behavior between whale and retail traders. Since September, the 30-day average of retail inflows to Binance has been rising, while the 30-day average of whale inflows to Binance fell from $5.9 billion in late August to $3.8 billion. Analysts note that whale activity at this scale does not guarantee a price rebound, as similar signals appeared during downtrends earlier in the year.
The Federal Reserve will announce its rate decision on Wednesday, October 28. Current market expectations show a 90.6% probability that rates remain at 3.75% to 4.00%, with a 9.4% chance of a rate hike.
