Strait of Hormuz Closure: Bitcoin Tumbles as Panic Selling Hits!

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Strait of Hormuz Closed Again: How Is <a href="https://investment-policy.com/btc-usd/">Bitcoin</a> Reacting?

Key Takeaways

  • Hormuz closed again today after US kept its naval blockade in place.
  • BTC dropped from $77,200 to $76,400 within minutes
  • RSI is now at 33.76 – deep oversold territory.
  • Volume spike at the drop confirms panic selling, not gradual distribution.
  • Weekend US-Iran talks in Islamabad are the next major catalyst to watch.

What Happened and Why

Iran’s Foreign Minister stated yesterday that the Strait of Hormuz is open to all commercial shipping, following the ceasefire between Israel and Lebanon. This news helped Bitcoin regain ground, rising back towards $77,300, and generally calmed financial markets.

Then, the IRGC issued a statement that ended the optimism fast:

“We warned you and you ignored it. Now enjoy Hormuz returning to its previous state.”

The situation arose because the US continued to block Iranian ports, even after Iran reopened the crucial strait. Iran viewed this as a deliberate challenge, responded in kind, and that’s how we ended up here.

What the Chart Shows

This morning, Bitcoin was trading relatively flat around $77,000-$77,200 with quiet activity. Around 8:30 UTC, news emerged, and the price quickly dropped. The chart shows two large red candles forming in quick succession, accompanied by a significant surge in trading volume. Within minutes, the price fell below $77,000, and continued to drop to $76,400 by the time this was written.

A sudden, steep drop in price with high trading volume is a typical sign of panic selling. It’s not a natural market correction; instead, it happens when traders react quickly to news and all sell at the same time.

The price has been steady around $76,550 recently, and fewer people are buying and selling. This is a positive sign, suggesting that buyers are supporting the price at this level.

RSI Is Flashing Oversold

The Relative Strength Index (RSI) is currently at 33.76, significantly below its signal line of 37.79. This indicates that the asset is deeply oversold on a 15-minute chart. Looking at past events, when the RSI has reached this level during times of geopolitical uncertainty, one of two outcomes typically occurs:

  • A relief bounce follows once the initial shock fades and buyers return.
  • Or more bad news lands and RSI pushes even lower, breaking the current support.

As a researcher, I’m currently monitoring a key support level at $76,400. If the price drops below that, my attention will shift to $75,000 as the next potential floor we need to analyze.

Why Does the Strait of Hormuz Move Bitcoin?

As an analyst, I’m closely watching the Strait of Hormuz, which is a critical choke point for global oil – roughly 20% of the world’s supply passes through it. If it were to close, we’d almost certainly see a sharp increase in oil prices, reignited fears about inflation, and a general flight to safety by investors. That means pretty much everything – stocks, crypto, you name it – would likely fall in value. While Bitcoin has actually done relatively well compared to gold and stocks since the conflict in Iran began in late February, it wouldn’t be shielded from a major disruption like that.

What to Watch Next

Negotiations between the United States and Iran are scheduled to resume this weekend in Islamabad, and this is currently the most important factor influencing Bitcoin’s price. If the talks go well, or even show some positive movement, Bitcoin could quickly rise back to around $77,500. However, if the talks fail or tensions increase, the price could fall to $75,000.

Currently, the technical indicators suggest the market is oversold and maintaining a support level. However, news events could still cause changes. That’s why it’s important to keep your alerts active over the weekend.

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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2026-04-18 13:17