Bitcoin dips beneath $71,000 with ETH, DOGE sliding as the war-week surge loses momentum.

Bitcoin’s sharp rally from last weekend ran out of steam after touching $74,000, sending the cryptocurrency back below $71,000 as buying pressure waned.

By mid-day Thursday in East Asia, bitcoin was trading around $70,987, down roughly 2.2% over the past 24 hours, following a surge that took it to its highest level since early February. The move from Saturday’s war-driven low near $64,000 to Thursday’s peak represented about a 15% gain in just five days, though roughly a third of that advance has now been retraced.

Technical analysts point to key resistance levels as the reason for the stall. Alex Kuptsikevich, chief analyst at FxPro, said bitcoin met the 61.8% Fibonacci retracement and just below the 50-day moving average — levels that typically attract selling during bear-market rallies.

The 61.8% Fibonacci level represents a recovery of about two-thirds of a prior decline, often where rallies lose steam, while the 50-day moving average marks the average closing price over the past 50 days, creating a break-even point where investors may take profits. With both indicators clustering near $74,000, the area became a technically crowded zone.

Kuptsikevich noted that the surge was amplified by a short squeeze, with bearish traders forced to cover positions. “Bulls still need to convince the market that the bear phase is over,” he said.

Bitunix analysts echoed this view, highlighting the market’s microstructure. The push to $74,000 triggered concentrated short liquidations, while long leverage clusters remain near $70,000, with secondary liquidity pools around $64,000. This sets a clearly defined range for potential next moves.

Despite the retracement, weekly performance for major cryptocurrencies remains positive. Bitcoin is up about 5.4% over seven days, Ether gained 2.7% to $2,080, BNB added 3.1% to $648, and Solana rose 2.1% to $88.39. Among laggards, Dogecoin fell 3.7%, while XRP was essentially flat with a 0.2% decline.

The broader macro environment remains challenging. Asia’s benchmark equities, tracked by MSCI, have fallen 6.4% since the Iran conflict escalated, on track for their worst weekly performance since March 2020. The U.S. dollar is heading for its strongest week since November 2024, and oil prices are seeing their largest weekly surge since 2022 — factors that usually weigh on risk assets like cryptocurrencies.

Friday offered some relief as Asian equities recovered early losses while the dollar weakened and crude dipped on reports that the U.S. is considering measures to address rising energy costs.

Geopolitical uncertainty persists. The United States Senate failed to block ongoing military actions against Iran, leaving the conflict’s duration and economic impact unresolved. Defense Secretary Pete Hegseth estimated operations could last three to eight weeks, while disruptions around the Strait of Hormuz continue to pressure energy markets.

For bitcoin, $70,000 — which had acted as resistance for much of the past month — now serves as a critical support test. Holding above that level could confirm the breakout, while a drop below may put the $64,000 floor back in play.

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