Bitcoin Sell-Off Deepens Amid Geopolitical Shock — Is the Bottom In?

The sell-side dominance comes amid intensifying geopolitical tensions between Israel and Iran, triggering fear-driven capitulation across crypto markets.

Binance Taker Volume Signals Capitulation

CryptoQuant’s analysis highlights BTC’s Net Taker Volume—a key metric that tracks aggressive market selling versus buying—has dropped sharply, indicating that sellers are dominating order flow. The 7-hour moving average has remained deeply negative since June 12, confirming sustained downside momentum.

Historically, such extreme readings (below -$160M) have coincided with short-term bottoms, as seen earlier this month. On June 6, a similar net taker sell-off preceded a 4% BTC rebound within 24 hours.

Market Reaction to Israel-Iran Conflict

The timing of this sell-off aligns with a geopolitical shock: an Israeli military strike on Iran reported early Friday. The escalation has sent global risk assets tumbling, including equities and crypto.

Key contributing factors:

Fear-driven liquidations: Traders dumped Bitcoin as markets braced for potential escalation. Leverage unwinding: Long positions were liquidated rapidly, further accelerating the decline. Risk aversion: Bitcoin, often viewed as a high-risk asset, faced intense sell pressure amid rising global uncertainty.

Could This Be the Bottom?

While the short-term outlook remains volatile, CryptoQuant suggests that this wave of panic selling may indicate a local bottom formation. Several signs support this thesis:

Capitulation by weak hands – Overleveraged retail traders are likely exiting the market. Potential whale accumulation – Large investors often buy aggressively during periods of fear and price weakness. Contrarian indicators – Similar net taker imbalances have historically signaled entry points for short-term rebounds.

Conclusion

The current -$197 million taker volume, combined with heightened geopolitical uncertainty, reflects extreme bearish sentiment. According to CryptoQuant’s historical data, such aggressive sell-offs frequently mark inflection points. While risks remain elevated, the conditions may be aligning for a short-term recovery—raising the question: Is the bottom in?

The post Bitcoin Sell-Off Deepens Amid Geopolitical Shock — Is the Bottom In? appeared first on Coindoo.