Bitcoin wavers near $77,000 as Iran strikes revive tensions

Bitcoin is stuck in a holding pattern, oscillating between $76,200 and $77,245 as traders try to make sense of a geopolitical situation that keeps shifting by the hour. The culprit: renewed military tensions between the US and Iran, which have turned every presidential statement into a potential price catalyst.

On May 18, President Trump announced the postponement of planned military strikes against Iran, reportedly at the request of Gulf state leaders. BTC responded almost immediately, rebounding toward $77,000 after dipping below $76,000 during the peak of the escalation scare.

A three-month cycle of fear and relief

The US-Iran conflict didn’t start this week. Airstrikes involving the US and Israel have been hitting Iranian targets since February 2026, creating a recurring loop of military action, diplomatic posturing, and market whiplash. Earlier in 2026, BTC saw lows between $67,000 and $74,000 before clawing its way back to its current range.

One particularly brutal escalation scare wiped out $580 million in long liquidations within hours.

The price range trap

Analysts are warning about what they’re calling a “price range trap” near current levels. The idea is straightforward: Bitcoin looks stable trading around $76,750 to $77,000, which lures traders into opening positions. Then a single geopolitical headline breaks the range in one direction, triggering cascading liquidations before the price snaps back.

Critical support sits around $75,000 to $76,000. If that floor breaks on the next escalation, the path lower gets steep quickly. The earlier 2026 lows of $67,000 to $74,000 would become the next logical landing zone.

Oil prices have surged above $100 per barrel amid the tensions, adding inflationary pressure that complicates the Federal Reserve’s calculus on interest rates.

Not everything is bleeding

Privacy tokens, particularly Zcash, gained nearly 8% during a recent market rebound. The outperformance suggests at least some capital is rotating within crypto rather than fleeing entirely.

The $75,000 support level is the number to watch. A clean break below it on heavy volume, particularly if accompanied by a new round of military escalation, would signal that the three-month range is resolving to the downside. A sustained hold above $77,000 with de-escalation momentum could open the door higher, but that requires diplomatic progress that has been elusive since February.

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