Bitcoin grabbed downside liquidity as oil-supply pressure sent BTC price action below $66,500 to its lowest levels since March 9.
Key points:
– Bitcoin reacted badly to fresh oil-supply threats ahead of Friday’s Wall Street open.
– BTC price action hunted bid liquidity, continuing a week of low-timeframe liquidity grabs.
– Another bear flag threatens to send the market below $50,000, analysts warn.
Bitcoin eyes range lows into monthly close
Reports that Iran had closed the Strait of Hormuz pushed BTC toward three-week lows ahead of Friday’s Wall Street open, slipping below $66,500. US stock futures were down and US WTI crude neared $97 per barrel as geopolitical tensions persisted.
Data from CoinGlass showed BTC/USD eating into a ladder of bid liquidity down to about $65,000, while a wall of asks kept price capped under $70,000. Trader Jelle noted that $70–71k had been confirmed as resistance again and pointed out liquidity built below—“generally not what you see at market bottoms,” adding he expected that liquidity to be taken out sooner or later.
The moves continued a pattern of liquidity hunts seen through the week. Analyst Michaël Van de Poppe said he wouldn’t be surprised by further weakness into the March monthly candle close, anticipating a potential sweep of the lows and expressing interest in buying in the lower $60K region if that happened.
BTC price gets $41,000 “measured target”
On longer time frames, participants focused on a potential bearish breakdown from Bitcoin’s second bear-flag construction of 2026. The current flag, similar to one seen in January, has produced targets below $50,000. Veteran trader Peter Brandt warned Bitcoin was “setting up for a rising wedge sell signal.”
Trader and educator Aaron Dishner described BTC as doing exactly what the bear-flag setup called for: breaking below the daily cloud and opening below it, a sign of hesitation rather than recovery. He said the measured target—from the January 14 high to the February 6 low applied to the current flag—puts downside at about $41,000.
This combination of geopolitical oil risk, short-term liquidity sweeps, and bearish technical structures left Bitcoin vulnerable into the monthly close, with analysts warning deeper sell-offs remain possible if support levels fail.
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