Bitcoin hits $78K then tumbles after US-Iran strikes

Bitcoin briefly reached $78,000 at the Wall Street open on Tuesday before reversing sharply, driving roughly $66 million in liquidations over a 24-hour period. The price swing affected both long and short positions during a brief, volatile session.

Price feeds showed BTC/USD touch $78,000 before sliding. CoinGlass recorded about $66 million in liquidated Bitcoin positions in the past 24 hours, with liquidations occurring on both sides as stop orders were triggered.

The price action followed reports of US strikes on Iran, which also pushed WTI crude toward $95 per barrel. US equity indices moved to new intraday highs on the same session.

On-chain analytics platforms reported a rapid shift in derivatives sentiment. Glassnode reported funding rates moved from negative to “decisively positive” as interest in long futures increased. Higher funding rates mean traders holding long futures pay those holding short futures.

Material Indicators wrote that Bitcoin price action “remains driven by liquidation hunts” and added that large traders appeared to be swing trading within a range rather than adopting a new macro bullish stance. The firm pointed to bid liquidity around $75,500 attempting to support the 21-week moving average, which sits near $75,800.

Trader Daan Crypto Trades noted the largest cluster of liquidity below the market was around $74,000, a level that may concentrate stop and limit orders and amplify volatility when price approaches it.

K33 Research reported muted overall activity, with weekly spot volumes approaching yearly lows, declining derivatives activity on both U.S. and offshore venues, and stagnating open interest. The firm also noted that realized and implied volatility have trended lower.

Technical indicators show nearby support near $75,000 and a liquidity cluster at $74,000, while funding rates and low market participation were cited by analysts as factors accompanying the short-lived volatility.