Bitcoin dropped to its lowest levels since March 9 as reports that Iran had closed the Strait of Hormuz stoked oil-supply fears and pushed BTC below $66,500. US WTI crude neared $97 per barrel and US stock futures were softer ahead of Wall Street’s open, amplifying risk-off flows.
On-chain and order-book data showed BTC eating into a ladder of bid liquidity down toward roughly $65,000 while a thick wall of asks kept price capped under $70,000. Market observers said this action continued a week-long pattern of low-timeframe liquidity hunts, where price briefly probes lower to clear bids before any durable rebound.
Trader Jelle pointed out that $70–71k has been reconfirmed as resistance and noted liquidity building beneath the market was ‘generally not what you see at market bottoms,’ suggesting that lower bids are likely to be taken out at some point. Analyst Michaël Van de Poppe said he would not be surprised by further weakness into the March monthly close, expecting a possible sweep of recent lows and expressing interest in buying only in the lower $60,000s if that occurs.
On longer timeframes, technical patterns raise the risk of a deeper decline. Bitcoin appears to be forming a second bear-flag/rising-wedge construction this year, similar to the January setup that produced downside targets below $50,000. Veteran trader Peter Brandt warned the structure is setting up for a rising-wedge sell signal.
Trader and educator Aaron Dishner added that BTC has broken below the daily Ichimoku cloud and opened beneath it, which reads as hesitation rather than genuine recovery. Applying the measured-target technique used earlier this year (from the January 14 high to the February 6 low) to the current flag produces a theoretical target near $41,000.
The combination of geopolitical oil risk, ongoing liquidity sweeps, and bearish technical structures leaves Bitcoin vulnerable into the monthly close. Analysts say deeper sell-offs remain possible if key support levels fail.
This is not financial advice. All trading involves risk; readers should conduct their own research before making investment decisions. The information herein is provided for informational purposes and carries no guarantee of accuracy or completeness.
