Bitcoin Crashes as Trump Threatens Iran: Is $65,600 the Last Hope for Bulls?

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<a href="https://jpyxx.com/btc-usd/">Bitcoin</a> Breaks Below Key Support as Trump Vows to Hit Iran ‘Extremely Hard’

Key Takeaways

  • Bitcoin breaks 50 SMA, drops to $66,549
  • RSI at 35 – oversold but no floor yet
  • Fear & Greed Index pinned at 8 for a month
  • $65,600 is the line bulls cannot lose

Bitcoin had been steadily rising for two days, moving from $66,000 to around $69,200. This upward trend was a recovery after several weeks of selling driven by global conflicts, and it brought the price closer to a key technical indicator, the 50-period Simple Moving Average. Trading volume increased, supporting the price rise, and the Relative Strength Index (RSI) showed improvement. For the first time in weeks, the technical indicators suggested a potential for further gains, especially as there were signs of easing tensions in the Iran conflict, giving traders a more positive outlook.

Then Trump spoke.

What the President Said and What the Market Heard

The highly anticipated speech failed to calm market concerns after a two-day rally. As reported by the BBC, President Trump stated the U.S. would respond forcefully to Iran within the next few weeks, threatening attacks on Iranian power plants if negotiations failed. He also suggested that countries relying on oil should simply take what they need from the Strait of Hormuz, a statement that, while strong, indicated the U.S. doesn’t currently plan to reopen the vital shipping lane.

Iran quickly responded to recent events, now accepting stablecoins as payment for ships traveling through the Strait of Hormuz. A spokesperson linked to Iran’s Revolutionary Guard dismissed U.S. military actions as targeting unimportant locations, refuted claims that Iran’s weapons supply was low, and vowed significant retaliation. They warned that Iran’s weapons manufacturing happens in secret, unknown locations.

Markets heard both sides. They sold.

The Chart Does Not Lie

As of 6:45 UTC on April 2nd, Bitcoin was trading at $66,549, a 3.7% decrease from the previous day, according to CoinMarketCap. This is a significant drop from its recent high of $69,200, reached just 36 hours prior. The 50-period Simple Moving Average at $67,795 was broken with a notable increase in trading volume, clearly indicating a downward trend. The Relative Strength Index (RSI) reached 35.08, continuing to fall without any signs of stabilizing or reversing direction on the hourly chart.

Two days of recovery, erased in hours.

Oil prices jumped after the recent announcement, confirming earlier concerns. OilPrice reports that Brent crude rose to $108 a barrel, indicating traders believe the disruption in the Strait of Hormuz – a vital route for 20% of the world’s oil supply, which Iran has blocked since late February – will continue for the foreseeable future.

For the past five weeks, the market has followed the same pattern: prices go up when there’s news about potential ceasefires, and they fall when fighting increases. Overall, the market ends each week around the same level it began. Investor sentiment remains extremely negative, as reflected by the Fear and Greed Index, which is stuck at its lowest possible reading and has been there for a month.

Two Roads From Here

The current situation is deeply uncertain and represents a fundamental shift, not just a temporary issue. With no end to the conflict in sight – Iran is demanding control over the Strait of Hormuz as a condition for peace, and the U.S. is planning further military action – these factors are crucial when interpreting any Bitcoin price movements.

If selling pressure keeps up, the price could easily drop further. A key support level to watch is $65,600, which held up well during last week’s sharp decline. If the price closes below that, it would signal a significant weakening and could lead to a drop towards $63,000, and potentially down to the $60,000 level – a long-term upward trend that buyers have been trying to protect. While the Relative Strength Index (RSI) at 35 suggests we haven’t reached a bottom yet, there’s still room for the price to fall before it looks like a true bottom has been reached.

Bitcoin could quickly jump in price if there are any signs of easing tensions – like a ceasefire, secret talks becoming public, or even a more moderate tone from leaders in Washington or Tehran. We saw this happen on March 31st when rumors of peace briefly pushed the price from $66,000 to $69,200 in less than two days. There are plenty of people wanting to buy Bitcoin, but they’ve been waiting for a positive reason to do so. Even a small improvement in the current conflict could quickly change the market’s direction. Because Bitcoin is currently considered ‘oversold’ and investor fear is very high, much of the negative news is already reflected in the price. This means any good news, at this point, could cause a surprisingly large price increase.

Historically, April has been the best month for Bitcoin, averaging a gain of over 20% over the past 15 years. This positive trend is still present, but it’s currently being overshadowed by major global events. These include an ongoing war, threats of further attacks, and warnings from the president that the most difficult period is yet to come.

The clear pattern we saw on Tuesday has disappeared. Now, the market’s trendline is fractured, the momentum indicator is falling, and tensions are rising. Everything is tightly wound, meaning any significant news – positive or negative – will likely cause a strong reaction.

This article is for informational purposes only and shouldn’t be considered financial, investment, or trading advice. Coindoo.com doesn’t support or suggest any particular investment or cryptocurrency. Always do your own research and talk to a qualified financial advisor before investing.

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2026-04-02 10:41