Analysis: Bitcoin Retreats to $76,000 Amid Fluctuating Middle East Tensions, Closure of Strait of Hormuz Triggers Market Volatility

According to Odaily, influenced by the fluctuating situation in the Middle East, the price of Bitcoin has retreated to around $76,000. Previously, Iran's temporary announcement to open the Strait of Hormuz triggered a rise in risk assets and a massive short squeeze. However, the subsequent re-closure of the waterway led to a rapid reversal in market sentiment.

Data shows this market movement triggered one of the largest liquidation events since 2026, with approximately 168,336 traders liquidated, totaling $762 million. Short liquidations accounted for about $593 million, representing nearly three-quarters of the total. During the upward phase, crude oil prices fell by nearly 10%, pushing Bitcoin to break through the key resistance level in the $76,000 to $78,000 range. However, as the Strait of Hormuz re-entered military control, with multiple oil tankers turning back, safe-haven sentiment resurfaced, leading to a price pullback.

Structurally, this rally was driven by persistently negative funding rates, with shorts continuously paying costs to longs, accumulating conditions for a squeeze. Despite the short-term correction, Bitcoin still maintains a weekly gain of approximately 4.5%, while mainstream assets like Ethereum have shown relatively more stable performance. The market's current focus has shifted to the key support level at $76,000. If the weekly close remains above this level, the breakout structure may be sustained; if it falls below, the price could potentially return to the consolidation range observed since March. (CoinDesk)