Bitcoin price holds steady after attack on Iran while altcoins tumble

After a sudden attack by the United States on Iran, cryptocurrency prices took a sharp hit. Bitcoin drops by 1.1% to just above $102,700, while Ethereum even loses its key support level and falls towards $2,100. The market reacts strongly to geopolitical uncertainty and investors appear to be reducing risk, especially with altcoins.

Bitcoin remains in consolidation phase

The recent correction comes at a sensitive time. Bitcoin has been stuck in a wide consolidation range for about 180 days, with declining resistance at the top and strong support at the bottom. That support level was tested again and once again held. There’s also a striking amount of short liquidations around $111,000, suggesting a sudden spike remains possible.

According to the charts, there’s still about $200 million in liquidity above the current price. Closing the futures gap near $113,000 could trigger such a move. However, as long as Bitcoin remains within this triangle, there’s no clear breakout. The 12-hour chart shows this phase has already lasted nearly 50 days.

Ethereum breaks below key support

Ethereum appears more vulnerable than Bitcoin. The coin drops below the crucial $2,400 level and is currently testing previously formed support zones between $2,100 and $2,200. Many traders are positioning themselves at these levels. Some expect a strong rebound once the situation in Iran stabilizes.

In the longer term, fundamental interest in Ethereum continues to grow. The Ethereum ETF has recently seen more inflows, network transactions are increasing, and major players like BlackRock are said to be accumulating ETH. The hope is that once calm returns to the Middle East, Ethereum will recover faster than other altcoins. Targets of $4,000 remain realistic for some.

Summer trend and macro data point to recovery

Historically, Bitcoin performs well during summers in bull markets. Although sentiment is tense right now, global liquidity growth suggests recovery is only a matter of time. The M2 money supply continues to rise, which benefits scarce assets like Bitcoin.

The expectation remains that once markets get more clarity about the conflict in Iran, a bounce could follow. Until then, the market remains directionless within the current range.