Rising tensions in the U.S.-Iran War continued today after reports claimed the United Arab Emirates struck an Iranian desalination facility. The alleged strike came as Iranian drones and missiles targeted Gulf areas, raising fears of wider escalation across the region. Due to this, analysts warn the Bitcoin price could drop toward $65,000 as geopolitical risk and ETF outflows pressure the crypto market.
U.S.-Iran War Escalation After Reported UAE Strike
Initial reports stated the United Arab Emirates struck an Iranian desalination plant Sunday amid increasing tensions in the U.S.-Iran War. This comes as U.S. president Donald Trump threatened to hit Iran very hard.
The UAE incident would mark the first Gulf military response following Iranian drone and missile attacks across regional targets. However, a senior UAE official quickly rejected the claim and denied the country carried out any strike.
As per The Jerusalem Post, the official stressed the UAE would not target civilian infrastructure while entering the conflict. Instead, the official said the country would only strike confirmed military sites if military action becomes necessary.
Despite the denial, regional tensions remain elevated as governments increase defensive measures. UAE authorities say they are defending national territory while also working to prevent the conflict from spreading further. As a result, markets closely watch every development linked to the expanding U.S.-Iran War.
New Iran Leadership Adds to the Uncertainty
Meanwhile, reports indicate Iranian authorities have already selected a new Supreme Leader following the reported killing of Ayatollah Ali Khamenei. Officials could publicly announce the successor within the next 24 hours, as per reports.
According to Fox News, Israel warned it would target anyone participating in the leadership selection process. The report stated Israel “will not hesitate to target” any successor chosen to replace Khamenei.
Leadership changes amid the U.S.-Iran War could alter Iran’s military strategy and regional response. As a result, investors remain cautious as geopolitical risks increase.
Bitcoin Price Faces Pressure as Analysts Flag Key Levels
As the U.S.-Iran war continues pushing oil prices higher, the Bitcoin price continues reacting to market uncertainty. Analyst Ted noted that Bitcoin dropped below the $67,000 level today. He identified the next crucial support zone between $64,500 and $65,000 before any potential reversal.
Ted explained that Bitcoin may retest this range if selling pressure continues. The warning comes as Bitcoin ETFs recently recorded notable outflows. Other analysts also outlined broader market scenarios.
According to Crypto Patel, Bitcoin continues trading between $62,000 and $72,000, forming a range that may determine the next major move. Patel added that failure to break the $74,000 level increases the probability of a deeper decline below $50K.
As CoinGape reported, analyst Captain Faibik projected a possible BTC price drop to $55,000 amid the U.S.-Iran war. At press time, Bitcoin was trading at $67,294, declining by 0.85% within one hour and by 1.11% over 24 hours. Recent market structure shows lower highs and lower lows after a failed rally near $74,000.
Source: TradingView
Price initially climbed from about $68,000 on March 4 before losing momentum near the recent peak. Bitcoin then gradually weakened toward the $68,000 support zone before slipping lower again. Immediate support now is between $66,500 and $66,000, while resistance remains near $68,000 and $70,000.
Source: https://coingape.com/uae-carries-out-first-iran-strike-as-btc-bulls-struggle-to-defend-key-support/
