Bitcoin price dropped below the $70,000 level as tensions in the Middle East pushed oil prices higher and digital assets lower. At press time, Bitcoin was trading at $67,757, down 0.44% in the last hour and 1.66% over 24 hours, according to CoinMarketCap data. The decline comes as analysts flag technical risks, while Bitcoin ETFs recorded significant outflows during the same period.
Analysts Flag Bitcoin Price Risks as Middle East Tensions Drive Volatility
Analysts now warn that the Bitcoin price could face deeper declines if key technical levels fail. Their outlook follows rising geopolitical tensions involving Iran and the United States.
According to analyst Captain Faibik on X, Bitcoin shows a bearish flag formation on the eight-hour timeframe. He explained that a confirmed breakdown could push the Bitcoin price toward a $55,000 target.
The analyst advised the market to wait for a clear downside breakout before entering short positions. However, Ted Pillows offered a more cautious view of current price conditions. He noted that Bitcoin recently dropped below the $68,000 level during rising macroeconomic pressure.
He noted that oil prices have surged amid heightened tensions between the U.S. and Iran. Historically, higher inflation from energy price spikes tends to weaken risk-on assets such as cryptocurrencies. Because of this, Pillows said Bitcoin must reclaim the $70,000 level soon.
Otherwise, the Bitcoin price could revisit the $65,000 to $66,000 support zone before a reversal attempt. The geopolitical pressure also intensified after reports that former U.S. President Donald Trump threatened to hit Iran “very hard.” As CoinGape reported, those comments have led to additional selling pressure.
Bitcoin ETFs Record Outflows
Meanwhile, Bitcoin ETFs experienced notable capital outflows, adding pressure to the market. As per SosoValue data, investors pulled $348.83 million from Bitcoin spot ETFs on March 6.
Source: SosoValue
Fidelity’s FBTC recorded the largest single-day withdrawal during that session. The fund posted $159 million in net outflows, bringing its cumulative historical net outflow to $153 million. Meanwhile, BlackRock sold $143.5 million worth of Bitcoin yesterday, adding pressure to the Bitcoin price. This led to scrutiny and market fear.
However, analyst Crypto Patel pointed to a broader context behind the transaction. He said BlackRock purchased $1.163 billion worth of Bitcoin during the previous ten trading days. That buying included 17,645 BTC. The data show the scale of institutional accumulation compared with sales.
Analyst on Rising Whale Activity
On-chain data also shows major investors increasing activity during the current market uncertainty. CryptoQuant analyst Darkfost reported growing whale participation in Bitcoin transfers.
According to Darkfost, Middle East tensions around the Strait of Hormuz intensified financial market uncertainty, affecting the Bitcoin price. Oil prices have risen more than 60% since the start of the year. That surge has increased global inflationary pressure and tempered expectations for monetary easing. Markets now estimate only a 4.4% probability of a Fed rate cut at the next meeting.
Earlier in the week, the total crypto market cap grew by roughly 11%, adding nearly $250 billion. However, the rally quickly reversed as liquidity left the market. Within days, approximately $175 billion disappeared from total market capitalization. Darkfost also tracked rising whale inflows to Binance during this volatile period.
Source: Darkfost
Over several trading days, whale transactions accounted for more than 70% of total exchange inflows. Darkfost defined whales as transactions exceeding 100 BTC. Such activity suggests large holders actively adjusted exposure while volatility remained elevated.