Bitcoin Plummets Below $104,000 Amid Israeli Strikes on Iran

On June 12, the prices of Bitcoin and Ethereum experienced a decline following reports of Israeli airstrikes on Iran. This escalation in conflict led to a retreat of investors from riskier assets.

In the past 24 hours, Bitcoin fell by 3.6%, dropping below the $104,000 mark to trade at $103,970 at the time of writing.

Ethereum decreased by 9.2%, reaching $2,503.

The market downturn followed news from the **Associated Press** regarding explosions in Tehran. An unnamed Israeli military official confirmed that the targets of the strikes were Iran’s nuclear and military infrastructure.

According to **CNN**, Israeli Defense Minister Israel Katz declared a state of emergency in the country, announcing that «a missile and drone attack is expected in the near future» as a retaliatory measure.

In the wake of these developments, oil prices surged by over 7%. The benchmark American crude, **West Texas Intermediate**, rose to $71.94 per barrel, while the international standard, **Brent**, reached $73.16 per barrel.

Nik Rak, director of LVRG Research, commented to The Block that the downward pressure on cryptocurrencies is linked to investors shifting towards safer instruments.

Analyst Min Jung from Presto Research also associated the sell-off in digital assets with the strikes on Iran, noting that oil prices have surpassed $70 for the first time in three months.

Despite the short-term volatility, some prominent players remain optimistic. Mike Novogratz, CEO of Galaxy Digital, believes that Bitcoin’s price could increase tenfold, potentially hitting $1 million. He argues that Bitcoin will eventually replace gold as the primary store of value, which he sees as the main driver for a price rally.

Novogratz pointed out that younger generations are increasingly drawn to digital assets, while interest in precious metals is gradually waning. He emphasized that Bitcoin needs to increase ten times to match gold’s market capitalization.

Novogratz identified «macroeconomic acceptance» as a key factor for Bitcoin’s growth, asserting that the process has entered an irreversible phase.

_»Currently, corporate treasuries, sovereign funds, and retail investors are investing in the asset. Easier purchasing methods have emerged. Bitcoin’s acceptance as a macro asset for value preservation has already become a snowball rolling down the hill,»_ added the Galaxy Digital chief.

From a technical perspective, the current correction of digital gold appears justified. The asset’s price rose about 10% between June 6 and June 10, making a subsequent 3.5% drop a normal occurrence. This view was shared by Axel Adler Jr. from CryptoQuant, who explained that the market is facing a «soft turning point.»

According to the analyst, the price drop is likely connected to profit-taking on long positions at resistance levels, confirmed by aggressive short-selling volumes.

Adler Jr. clarified:

_»This is a classic ‘soft turning point’ after an upward trend: as long as the funding rate remains positive and open interest declines, a short-term correction or consolidation below $108,000 should be expected.»_

On June 11, Bitcoin’s price corrected to $107,369, while Ethereum dropped to $2,746. The decline followed U.S. inflation data that was better than expected, triggering profit-taking based on the «buy the rumor, sell the news» principle, according to **Decrypt**.

The initial momentum that pushed Bitcoin’s price above $110,000 and Ethereum’s close to $2,880 quickly faded. The **Fear and Greed Index** decreased from 72 to 71 points, and as of the time of writing, it has dropped to 61.

Technical analysis indicates that Bitcoin is still within an ascending channel established in mid-May, suggesting that the current pullback is a correction rather than a trend reversal.

The asset is confidently trading above the 50-day exponential moving average (EMA50), reflecting the strength of buyers.

Key indicators offer a cautious assessment:

The long-term outlook remains bullish, with EMA50 above EMA200. A critical support zone lies at the lower boundary of the ascending channel around $103,000. Maintaining this level will preserve potential for movement toward historical highs.

The Ethereum chart appears more optimistic than that of Bitcoin. The asset has broken through the upper boundary of its consolidation channel, where the price had been between $2,400 and $2,700. The price has repeatedly bounced off support levels, strengthening traders’ confidence.

Technical indicators for ETH show greater optimism:

The support zone between $2,400 and $2,500 provides a solid entry point. A breakthrough of the resistance level at $2,850 could pave the way for price targets of $3,000 and $3,300.

Recall that on June 9, the price of the first cryptocurrency exceeded $107,000 amid capital outflows from spot **ETFs** and news of unrest in the U.S.