Bitcoin Plunges to $104,000 Amid Market Panic Triggered by Middle East Conflict

Bitcoin Price Review

Figure:https://www.gate.com/trade/BTC_USDT

In the early hours of June 12, 2025, as trading on the exchange entered the Asian session, the price of Bitcoin suddenly fell from around $108,350, hitting a low of approximately $103,000, and later rebounding to stabilize around $104,000. This rapid decline set a new short-term low since May.

Geopolitical conflicts trigger panic

On the evening of that day, media reports stated that Israel launched a preventive airstrike on Iran’s nuclear facilities, and Iran’s official response was to announce a “severe” counterattack, leading to a rapid escalation of tensions. As soon as the news spread, global risk assets were sold off one after another, and the digital currency market was no exception.

Market Sentiment and Liquidity Analysis

According to Coinglass data, nearly $100 million in liquidations have accumulated in the market over the past 12 hours, with over 90% being long positions, reflecting investors’ panic response to the rapid price decline. At the same time, trading volume has significantly increased, and short-term arbitrage funds have clearly retreated, further intensifying the downward pressure.

Key support level in technical analysis

From a technical chart perspective, Bitcoin has shown a typical “double top” reversal signal after falling below $104,500. If it cannot effectively return to that level, the price may continue to drop towards the vicinity of $100,000. The primary support level below is $102,000, followed by the psychological level of $100,000.

Investment Strategies and Risk Tips

1. build positions in batchesIf the price stabilizes and rebounds to key support levels, consider buying in batches to diversify costs.
2. Set stop lossIt is recommended to set the stop loss price below $100,000 to prevent a short-term big dump.
3. Pay attention to the news.Close monitoring of the situation in the Middle East and global macro data to avoid severe fluctuations caused by sudden events.
4. Manage your positions wellNewbies should limit their exposure to 10%-20% of total assets to avoid excessive exposure to single market risks.