Bitcoin fell below $64,000 on July 31, 2026, as military conflict between the United States and Iran continued. Tensions flared when Iran attacked two oil tankers transiting the Strait of Hormuz, despite both vessels being under US military escort. Tehran also claimed to have repelled four other vessels in the same strategic waterway.
The presence of a US military escort made the prospect of direct retaliation very real, elevating the incident to a much higher risk level than standard attacks on commercial shipping. Iran also launched drone strikes against US-linked military facilities in Kuwait and Bahrain. However, Kuwait successfully intercepted the incoming drones with no casualties reported.
On the political front, President Donald Trump immediately convened a cabinet meeting at Camp David to weigh Washington’s next moves. No new military operations have been announced yet. The US Senate narrowly failed to pass a 49-50 vote intended to curb Trump’s authority to pursue further hostilities. Meanwhile, proposals for a land blockade of Iran by US and Israeli forces remain under discussion and have not become official policy.
The geopolitical turmoil quickly spilled over into financial markets. Crude oil prices surged, the US dollar strengthened, and Treasury yields climbed. These three factors exerted downward pressure on non-yielding risk assets like Bitcoin.
Short-Term Sellers Regain Market Control
The impact of these events was evident on the price charts. BTC slid, losing two key defense lines: the 7-day Simple Moving Average (SMA) at $63,445 and the 25-day SMA at $64,488. The drop below both indicators confirms that short-term sellers have seized control.
Weakening momentum signals also emerged from other technical metrics. Aroon Down reached 100%, compared to Aroon Up sitting at 28.57%. On the 4-hour chart, selling dominance was confirmed by the MACD indicator at -229, below the signal line of -109, with the histogram widening to -120.
This pressure has pushed Bitcoin to test lower support zones. The nearest target sits at $62,000, representing the neckline of a rounded-top pattern. This formation has been taking shape since late June, when BTC climbed from $59,000 to a peak of $66,700 on July 22, before printing a series of lower highs.
When a Turning Point Could Occur
If the $62,000 level breaks, Bitcoin could slide further toward $60,000. From there, the full objective target of the rounded-top pattern sits at $59,000.
However, reversal signals have not completely faded. The Stochastic RSI indicator points to oversold conditions at 12.29 and 18.60. Both lines sit below the 20 threshold, reflecting potential for a short-term reversal in the near future.
Trader Ted Pillows shared a similar view regarding the remaining liquidity cluster around the $62,000 zone. According to Pillows, once this price cluster is swept, an opportunity for a reversal could open up. For market participants, the $62,000 level serves as a decisive benchmark before choosing to re-enter crypto or step aside from armed conflict risks.
Reported by crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
