Bitcoin price drops toward key support as U.S.-Iran news sparks profit-taking, can bulls defend?

Bitcoin price has retreated toward key support after progress in U.S.-Iran talks sparked a broad selloff across risk assets and accelerated liquidations in crypto markets.

According to data from crypto.news, Bitcoin (BTC) price slid as much as 2.2% to an intraday low near $62,560 on June 23 before stabilizing around the $62,800 area.

The drop followed a sharp drop in crude oil prices, which fell below $73 per barrel after Washington granted Iran a 60-day license to sell oil on international markets and reports emerged that Tehran could regain access to $12 billion in frozen funds as part of a developing agreement with the U.S.

The risk-off move extended beyond crypto. Gold fell roughly 2% over the past day, while silver dropped more than 5%. Asian equities also weakened, with Japan’s Nikkei 225 and Hong Kong’s Hang Seng Index posting losses as investors locked in profits across technology and semiconductor stocks that had led gains earlier this year.

Spot Bitcoin ETFs continued to lose capital. U.S.-listed funds recorded net outflows of $68 million on Monday, extending a trend that has persisted since mid-May. ETF products have recorded only three days of inflows during that period, leaving one of Bitcoin’s most important sources of institutional demand largely absent during recent market weakness.

Additional pressure came from the corporate treasury sector. Debate surrounding Strategy’s preferred stock programs intensified after the company’s STRC shares continued trading below their intended par value. Because Strategy relies on preferred-stock issuance to help finance Bitcoin purchases, the weakness renewed concerns about the pace of future corporate accumulation.

At the same time, the Federal Reserve remains a headwind for risk assets. Inflation data have kept expectations for rate cuts subdued, while several major banks now expect policymakers to maintain restrictive monetary conditions for longer. Higher Treasury yields and a stronger U.S. dollar have reduced the appetite for non-yielding assets such as Bitcoin.

Bitcoin price tests major support as liquidation pressure builds

From a technical perspective, Bitcoin price failed to hold above the June 22 high near $65,468 before reversing sharply lower. The rejection triggered a breakdown through several short-term support levels and pushed price back toward the 78.6% Fibonacci retracement level near $62,455, measured from the June rebound between $59,168 and $74,525.

The daily chart shows BTC trading below the Supertrend resistance level near $68,400, keeping the broader trend tilted to the downside. A previous support area around $65,000 has now flipped into resistance, while the 61.8% Fibonacci retracement level near $65,035 remains another hurdle for bulls attempting a recovery.

Momentum indicators have weakened. On the four-hour chart, RSI has slipped below the neutral 50 level and sits near 38, while Aroon readings show bearish control returning after last week’s rebound attempt stalled beneath descending trendline resistance.

Derivatives positioning also contributed to the latest selloff. CoinGlass liquidation heatmaps show Bitcoin sweeping liquidity clustered around the $65,000 region before reversing lower. Large leverage concentrations remain visible between $65,500 and $66,000, creating a potential magnet if buyers regain control.

Commenting on the move, analyst Lennaert Snyder argued that the liquidity grab played out largely as expected. “BTC took 65K liquidity and dumped,” Snyder said.

The analyst added that he remains bearish and would consider adding to short positions if Bitcoin rebounds toward the $65,600 area after sweeping nearby liquidity.

Loss of $62,000 could expose Bitcoin to fresh downside

The immediate support zone sits between $62,000 and $62,500, where buyers have stepped in several times during June. If bulls can hold the range, it could open the possibility of a rebound toward $65,000 and potentially $66,800 once the selloff wanes.

A decisive break below $62,000 would weaken that scenario. Such a move would expose the June low near $59,200 and place Bitcoin back inside the lower portion of its multi-week trading range. However, persistent ETF outflows, persistent weakness in institutional demand, or renewed pressure across global equity markets could accelerate downside momentum if support fails.