Bitcoin/USD, Time frame: 4H, source: TradingviewBitcoin/USD, Time frame: 4H, source: Tradingview

Bitcoin came under significant selling pressure this week, falling to its lowest level in nearly four months before rebounding above the $64,000 mark. The decline was largely driven by escalating geopolitical tensions in the Middle East, which negatively affected investor appetite for risk-sensitive assets.

Market sentiment was also weighed down after Strategy sold part of its Bitcoin holdings, while US listed spot Bitcoin ETFs recorded outflows for a fifth consecutive week. According to Bloomberg data, net outflows reached approximately $443 million during the latest week, following nearly $290 million in the previous week, highlighting persistent institutional selling pressure.

Meanwhile, Bitcoin’s market capitalization dropped sharply to around $1.25 trillion, its lowest level since October 2024, compared to a peak of approximately $2.48 trillion in 2025. This reflects a significant decline in risk appetite across the cryptocurrency market.

Despite the recent rebound, continued ETF outflows and ongoing geopolitical uncertainty are keeping pressure on Bitcoin, making its next moves heavily dependent on a recovery in institutional demand and an improvement in overall market sentiment.

From a technical perspective, Bitcoin remains in a broader downtrend after forming a bearish continuation pattern known as a bear flag, which typically develops as a corrective channel against the prevailing trend. In addition, prices continue to trade below the 200-period Simple Moving Average (blue line), reinforcing the negative outlook over the medium and long term.

Attention now turns to the $59,851 level, a key support area that investors and traders are closely monitoring. A break below this level could open the door for further downside pressure, while a bullish rebound may signal the start of a recovery. Such a scenario could gain momentum if geopolitical tensions in the Middle East ease and risk sentiment improves across global financial markets.