Weekend crypto selloff after Iran conflict escalation. Technical analysis and what comes next.
Over the weekend of March 22-23, Bitcoin dropped from $72,000 to $68,200. The main reason? Iran conflict escalation and general risk-off sentiment across markets.
Over $400 million in futures positions were liquidated - the vast majority were long positions.
Bitcoin maintains its uptrend from early March despite the correction:
The key level is $67,500. If held, we could see a retest of $72,000 in the coming days.
The weekend drop left a CME gap around $70,000-72,000. Historically, 90%+ of CME gaps on Bitcoin get filled, suggesting a return to that area.
Crypto volatility is a double-edged sword. Big moves create opportunities but also risk. On prop trading accounts with drawdown limits (e.g. 6% on instant accounts), such drops can be dangerous without proper risk management.
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