BTC hits 3-week low as analysts eye $41K price target

• Bitcoin dropped below the $66,500 mark, reaching its lowest price level since March 9.
• Geopolitical instability regarding Iran and the Strait of Hormuz has pushed WTI crude oil toward $97 per barrel, impacting risk assets.
• Market analysts identify a bear flag and rising wedge patterns that could target prices below $50,000.

Geopolitical Tensions and Oil Supply

As the Wall Street opening bell approached on Friday, Bitcoin faced significant downward pressure. Reports indicating that Iran might close the Strait of Hormuz oil route triggered concerns over global energy supplies. This geopolitical friction caused US WTI crude oil to climb toward $97 per barrel, while US stock futures showed a downward trend. Consequently, BTC fell to its lowest point in nearly three weeks, reacting poorly to the macro-economic uncertainty.

Liquidity Grabs and Resistance Levels

Market data from CoinGlass revealed that Bitcoin has been systematically hunting bid liquidity. The price action moved into a ladder of buy orders extending down to $65,000. On the overhead side, a significant "wall" of sell orders has effectively pinned the price below the $70,000 threshold. Trader Jelle noted that the $70,000-$71,000 range has firmly re-established itself as a major resistance zone. Meanwhile, Michaël van de Poppe suggested that a sweep of recent lows would not be surprising as the market heads toward the March monthly close.

Technical Outlook and Bearish Signals

Longer-term technical analysis has turned increasingly cautious. Veteran trader Peter Brandt highlighted a rising wedge sell signal, suggesting a potential breakdown. Other analysts are focusing on a bear flag formation, the second of its kind in 2024. According to some projections, this structure could lead to a correction toward the following levels:

• Breakdown targets as low as $41,000 or even below $50,000.
• Continued hesitation after price broke below the daily cloud indicator.

Aaron Dishner observed that the current price action reflects the expected outcome of a bear flag setup. He noted that after breaking below the daily cloud, the lack of a significant rebound indicates market hesitation rather than a recovery.