Key Highlights
- BTC reached a Sunday low of $70,623 following the US blockade announcement of the Strait of Hormuz
- Diplomatic negotiations between Washington and Tehran ended without agreement after Iran declined to halt its nuclear weapons development
- Crude oil prices surged 9.5% to reach $105 per barrel in the first half-hour of US futures trading
- Open Interest in Bitcoin futures declined to $51.39 billion from the previous day’s $54.82 billion
- BTC has gained 7.4% from the start of the US-Iran military conflict on Feb. 28
Bitcoin experienced a decline to $70,623 on Sunday following the announcement of a US naval blockade targeting the Strait of Hormuz. The strategic decision emerged after diplomatic discussions between Washington and Tehran reached an impasse over the weekend.
President Donald Trump verified the blockade through a Truth Social statement, indicating that Tehran’s refusal to abandon its nuclear weapons development represented the sole substantive obstacle to resolution.
J.D. Vance, serving as Vice President, revealed Saturday evening that negotiations held in Pakistan failed to secure an extended cessation of hostilities. BTC maintained prices above $73,000 throughout most of Saturday before experiencing a sharp correction.
Following the blockade disclosure, BTC declined to approximately $70,900 — representing a 2.5% decrease across 24 hours. The asset continued lower to $70,623 as US futures markets commenced trading Sunday.
Crude oil prices jumped 9.5% to $105 per barrel during the initial 30 minutes of market activity. Brent crude reached $98 on Monday as the geopolitical standoff persisted.
BTC Maintains Position Above $70,000 Threshold
By Monday, Bitcoin had recovered above the $71,000 level, maintaining position above its 50-day Exponential Moving Average (EMA) at $70,753. This 50-day EMA currently functions as immediate support.
Open Interest in Bitcoin futures contracted to $51.39 billion on Monday, based on CoinGlass tracking data. This represents a decrease from the prior day’s $54.82 billion, indicating diminished risk appetite among leveraged market participants.
The Relative Strength Index (RSI) registers at 54, indicating moderate bullish momentum. The MACD continues to display positive readings, suggesting a reduction in selling pressure.
Bitcoin’s Price Movement During the Conflict Period
Bitcoin has appreciated approximately 7.4% from the beginning of the US-Iran military engagement on Feb. 28, when a US military operation resulted in the death of Iranian Supreme Leader Ayatollah Ali Khamenei. Bitcoin was valued around $71,194 at press time.
This performance places Bitcoin ahead of both the S&P 500 and gold during the identical timeframe.
The Strait of Hormuz facilitates approximately 20% of worldwide oil commerce. Interference with this critical passage has created turbulence across financial markets throughout the past six weeks.
A daily closing price exceeding $73,000 could establish a trajectory toward $75,623 — the 23.6% Fibonacci retracement level from Bitcoin’s $126,200 to $60,000 downturn. Primary downside support continues at the 50-day EMA near $70,753. A breakdown beneath this threshold could trigger movement toward $60,000.
Bitcoin established its all-time peak of $126,080 in October.
