Bitcoin (BTC) came under renewed selling pressure on Monday, slipping toward $62,000 as investors moved away from risk assets following escalating tensions between the United States and Iran.
The decline came after U.S. President Donald Trump said the United States should take control of the Strait of Hormuz, a key global oil shipping route, following Iran’s reported closure of the strategic waterway.
The geopolitical uncertainty weighed on financial markets, with the Nasdaq Composite falling around 1% at the Wall Street open, while WTI crude oil climbed to around $75 per barrel amid concerns over potential supply disruptions.
Bitcoin also faced heavy selling pressure. Market analysts reported a surge in short positions, with traders betting on further downside as BTC approached a critical support level near $62,000.
Crypto analytics platform JDK Analysis said Bitcoin was testing its moving Volume-Weighted Average Price (mVWAP), a level considered important for determining short-term market direction. Analysts warned that a break below support could expose Bitcoin to a decline toward $60,000.
Market commentator Exitpump also highlighted a significant increase in aggressive short selling alongside rising open interest, indicating growing bearish sentiment.
Despite the weakness, some analysts remain optimistic about Bitcoin’s medium-term outlook. Trader Roman said several technical indicators, including the Relative Strength Index (RSI) and trading volume, suggest that selling momentum may be fading.
He maintained that Bitcoin could still rally toward the $70,000–$75,000 range if buying interest strengthens in the coming weeks, adding that spot market data indicates investors continue to accumulate Bitcoin despite the recent correction.
Analysts remain divided over Bitcoin’s near-term direction, with some expecting continued volatility throughout the third quarter before a potential recovery later in the year.
