bullish

Bitcoin

Drops

would

<p>The Bitcoin price has refused to break and hold above the $64K horizontal resistance level. Middle East conflict escalation could be the cause of the recent dip below $63K. Could the dip worsen, or will major support structures hold?</p>
<h2 id="bulls-fail-to-break-64k">Bulls fail to break $64K</h2>
<p>Source: <a href="https://www.tradingview.com/x/h5tsAuzm/" rel="noopener noreferrer nofollow">TradingView</a></p>
<p>A sharp decline under $63K has the <a href="https://coinstats.app/coins/bitcoin/" rel="noopener noreferrer nofollow">$BTC price</a> finding support at <a href="https://cryptodaily.co.uk/2026/07/bitcoin-rolling-over-can-bulls-maintain-the-rally" rel="noopener noreferrer nofollow">the 200 SMA</a>. A further price fall would then bring the major support of the bull market trendline into play.&nbsp;</p>
<p>Could this be the full extent of the dip for now? The 4-hour Stochastic RSI indicator lines are about to bottom, so there could be a bounce, or at least some sideways price action for a while. That said, when the U.S. stock market opens later there could be some more downward pressure feeding through into Bitcoin. This remains to be seen.</p>
<p>One major area of concern for the bulls is that <a href="https://cryptodaily.co.uk/2026/07/bitcoin-holds-strong-amid-renewed-middle-east-hostilities" rel="noopener noreferrer nofollow">a higher high was still not made</a>, in spite of the repeated attempts to break above the $64K resistance over the weekend.</p>
<h2 id="bearish-m-pattern-developing">Bearish M pattern developing?</h2>
<p>Source: <a href="https://www.tradingview.com/x/y58f00Gr/" rel="noopener noreferrer nofollow">TradingView</a></p>
<p>Moving out into the daily time frame there is the possibility that an M pattern may be developing, with the bull market trendline forming the neckline. If a knock-on effect from the U.S. stock market does take place, the <a href="https://coinstats.app/coins/bitcoin/" rel="noopener noreferrer nofollow">$BTC price</a> could fall down to the bull market trendline and complete the pattern. For the M pattern to then play out, a confirmed break below the trendline would be next. The measured downside move for the pattern would be to just under $59K.</p>
<p>Another factor potentially pushing the price down is <a href="https://cryptodaily.co.uk/2026/07/bitcoin-holds-strong-amid-renewed-middle-east-hostilities" rel="noopener noreferrer nofollow">the descent of the 50-day SMA</a>. As this moving average comes down, it is likely to provide resistance to an upside move in the price.</p>
<p>Finally, a double dip in the daily Stochastic RSI may be about to occur. These often lead to a decent period of downside price action, as was previously seen in mid-June through to the beginning of July.</p>
<h2 id="weekly-time-frame-looking-bullish">Weekly time frame looking bullish</h2>
<p>Source: <a href="https://www.tradingview.com/x/22CPuA6X/" rel="noopener noreferrer nofollow">TradingView</a></p>
<p>The much higher time frame of the weekly is painting a more bullish picture. While uncertainty reigns in the short-term time frames, here in the weekly all is still relatively serene. The <a href="https://coinstats.app/coins/bitcoin/" rel="noopener noreferrer nofollow">$BTC price</a> continues to hold <a href="https://cryptodaily.co.uk/2026/07/bitcoin-price-survives-61k-dump-64k-resistance-holds" rel="noopener noreferrer nofollow">the bull market trendline and the 200-week SMA</a>. As long as this remains the case, the bears will be worrying that the bear market may have found a bottom.</p>
<p>One significant sign for this is <a href="https://cryptodaily.co.uk/2026/07/bitcoin-price-survives-61k-dump-64k-resistance-holds" rel="noopener noreferrer nofollow">a cross-up of the Stochastic RSI indicator lines from the critical 20.00 level</a>. If these indicators keep moving up, upside price momentum will be signalled, meaning that this could well be a sign that the tide is turning and that the bull market is beginning.</p>
<p>On the other hand, if a war-inspired black swan rears its ugly head, a final collapse into the bottom of the bear market could be a bleak alternative.</p>
<p>Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p>

Bitcoin Drops 3% as US-Iran Hostilities Escalate

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