Bitcoin, Ethereum, Dogecoin Dip As Investors Jittery Over US Involvement In Iran-Israel Conflict : Analyst Says BTC's Reclaim Of $106,000 Is 'Where The Party Happens'

Leading cryptocurrencies edged lower Tuesday amid fears of U.S. involvement in the Iran-Israel conflict.

What Happened: Bitcoin steadily declined throughout the day, falling to an intraday low of $103,396.53 by afternoon.

Ethereum also gave up gains from Monday's comeback rally, tumbling below $2,500 before paring losses overnight.

Investors remained on edge amid concerns of U.S. involvement in the ongoing Iran-Israel war. In a series of Truth Social posts, Trump said that "we have complete and total control" over Iran’s skies and demanded an “unconditional surrender.” 

Over $330 million was liquidated from the cryptocurrency market in the last 24 hours, with nearly $268 million in bullish long bets wiped out. That said, about $650 million in Bitcoin shorts risked liquidation if the apex cryptocurrency rebounded to $107,000. 

Bitcoin’s Open Interest fell 1.97% in the last 24 hours. Interestingly, more than 55% of Binance’s top traders with open BTC positions were positioned long, according to the long/short ratio.

The market sentiment flipped from "Greed" to "Neutral," according to the Crypto Fear & Greed Index.

Meanwhile, in a positive development, the Senate approved a landmark bill establishing the country’s first regulatory framework for stablecoins. The bill now heads to the House for further debate.

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The global cryptocurrency market capitalization stood at $3.25 trillion, following a dip of 1.36% in the last 24 hours.

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Stocks fell as the recovery rally lost steam on Tuesday. The Dow Jones Industrial Average slid 299.29 points, or 0.70%, to close at 42,215.80. The S&P 500 lost 0.84% to end at 5,982.72. The tech-heavy Nasdaq Composite declined 0.91% to close at 19,521.09.

Investors remained on edge amid concerns of U.S. involvement in the ongoing Iran-Israel war. In a series of Truth Social posts, Trump said that "we have complete and total control" over Iran’s skies and demanded an “unconditional surrender.” 

Meanwhile, the Federal Reserve is expected to hold interest rates unchanged in the current 425-450 bps range at Wednesday's meeting, according to the CME FedWatch tool.

See More: Best Cryptocurrency Scanners

Analyst Notes: Well-known cryptocurrency commentator Michaël van de Poppe noticed that Bitcoin swept some liquidity but bounced back soon after.

"Doesn’t say that we’ve bottomed, but it’s a great sign to be accumulating those corrections before the next BIG leg upwards happens," Van de Poppe added. "Reclaim of $106,000 is where the party happens."

Another widely followed cryptocurrency analyst and trader, DevKhabib, stated that Ethereum's rejection will take it below the key support level at $2,380 and test the $2,200 levels.

"As long as we don’t close any weekly candles below the 5-year trendline(red diagonal line), we should be good," the analyst predicted.

Photo Courtesy: alfernec on Shutterstock.com

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