Bitcoin Faces Downside Risk Amid Geopolitical Tensions; $102K Support and ETF Inflows Key for Traders

Bitcoin’s price remains volatile amid ongoing geopolitical tensions, especially the recent Israel-Iran conflict, which has caused sharp market reactions. Analysts from Bitfinex warn that Bitcoin may face further downside unless it consistently holds above the critical $102,000 support level. A breakdown below this support could trigger greater selling pressure, while maintaining it may absorb ongoing sell-offs and initiate a potential bullish reversal. Over the past month, Bitcoin has dipped 0.25%, highlighted by a 2.8% drop after military escalations, but quickly rebounded to around $104,790, reflecting robust market absorption. Notably, spot Bitcoin ETFs have attracted strong institutional and retail interest, with $412 million in net inflows recorded over six consecutive trading days, indicating sustained demand even during turbulent times. While Q3 historically presents weak performance for Bitcoin, the current environment of heightened volatility offers high-risk, high-reward opportunities for traders. Technical analysts stress monitoring the bull market support band and ETF inflow trends, as these could provide early signals of market direction. Mixed market sentiment prevails: optimism persists due to solid inflows and quick price recoveries, but some skepticism remains regarding Bitcoin’s inability to consistently break all-time highs and concerns about future bearish phases if support falters. Traders are advised to watch support levels and macroeconomic events closely, as market sentiment may shift rapidly.