Bitcoin Falls to $68,770 After Trump’s Iran Ultimatum Triggers Overnight Liquidation Cascade

A weekend geopolitical shock erased eight days of gains in a single hourly candle.

At the time of writing, Bitcoin is trading at $68,778 on the one-hour Binance chart, up marginally at 0.06% on the hour after a turbulent overnight session. The chart covering March 21 through the morning of March 22 shows price spending the majority of Saturday in a controlled range between $70,500 and $70,750, consolidating below the 50-period simple moving average at $70,131 which was already sloping downward and capping recovery attempts throughout the day.

The breakdown arrived late in the evening. A single candle drove price from approximately $70,250 to a low of $68,648, the largest bar and the largest volume spike on the chart by a significant margin. After setting that low, price attempted a recovery toward $69,500 through the early morning hours before fading again. Bitcoin has spent the hours since drifting between $68,778 and $69,300, unable to reclaim the levels that acted as support before the break.

The 50-period simple moving average at $70,131 now sits approximately $1,350 above the current price with a clear downward slope. The 50-day simple moving average on the daily timeframe sits at $69,975, just above current price, making that level the immediate overhead reference for any recovery attempt. The 200-day simple moving average at $93,097 reflects how far the market has traveled from its prior trend average.

What the RSI Shows

The 14-period RSI on the hourly chart reads 29.59, with its signal line at 33.26. A reading below 30 places momentum in oversold territory, meaning the speed and intensity of selling over the recent period has been extreme enough to push the short-term momentum indicator to its lower boundary. The signal line sitting above at 33.26 indicates that selling conviction built sharply following the overnight breakdown rather than gradually. The RSI reached its most extreme point during the drop itself, visible as the shaded pink zone at the bottom of the indicator panel, before recovering partially. That partial recovery without price following meaningfully higher reflects a market that has absorbed the immediate shock but has not found buyers willing to push aggressively from current levels.

The Trigger

Donald Trump issued a 48-hour ultimatum to Iran late Saturday, threatening to attack the country’s power plants if the Strait of Hormuz was not reopened to commercial shipping. The escalation reversed Friday’s tone entirely, when Trump had indicated he was considering winding down the military operation. Markets had spent the previous week building confidence around de-escalation, with Bitcoin rallying to a weekly high of $75,912 on that narrative. The deadline expires Monday evening. The Strait of Hormuz, which handles roughly 20% of the world’s oil and gas flows, remains effectively closed to most commercial traffic.

The Sentiment Reading

The Fear and Greed Index for BTC sits at 10, a reading of Extreme Fear. That places current market sentiment at one of its most pessimistic levels, consistent with a market pricing in sustained uncertainty rather than a short-term dip. Volatility at 3.67% registers as medium, suggesting the overnight move was sharp but has not yet triggered the kind of persistent elevated volatility that defined the most acute phases of prior drawdowns.

Green days over the past 30 sessions stand at 15 out of 30, a 50% reading that reflects a market equally split between positive and negative closes over the past month. The 14-day RSI on the daily timeframe reads 46.15, described as neutral, meaning the broader daily momentum structure has not yet reached oversold territory despite the recent correction. That distinction matters. The hourly chart is oversold. The daily chart is not. The damage from the overnight move is visible at the short-term level but has not yet registered as an extreme on the timeframe that defines the broader trend.

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