Bitcoin falls below $71,000 as ETH and DOGE retreat, war-driven rally stalls at resistance.

Bitcoin’s sharp rebound this week lost momentum after the cryptocurrency approached $74,000, a level where buying interest appeared to dry up.

After climbing to that mark during Thursday’s surge, bitcoin retreated to around $70,987 by mid-day in East Asia, down about 2.2% over the previous 24 hours.

The rally had been significant. From a conflict-driven low near $64,000 on Saturday, bitcoin climbed to a peak of roughly $74,000 within five days — a gain of about 15%. Since then, however, the pullback has erased roughly a third of those gains.

Technical analysts say the rejection occurred near two important resistance levels. According to Alex Kuptsikevich, chief analyst at FxPro, the rally stalled around the 61.8% Fibonacci retracement level and just below the 50-day moving average — technical markers that often attract selling pressure during bear-market rebounds.

Fibonacci retracement levels are based on a mathematical sequence that traders use to estimate where price rebounds may stall. The 61.8% level is particularly significant because it represents a point where prices have recovered much of a previous decline, yet historically many countertrend rallies lose momentum there.

The 50-day moving average can also act as resistance in downtrends, as it reflects the average price paid by buyers over the past 50 days. When prices approach that level during a recovery, some investors may sell to break even, creating additional selling pressure. With both indicators clustering near $74,000, the area became a technically crowded zone.

Kuptsikevich said the recent surge was amplified by a short squeeze, with bearish traders forced to close positions after placing stop orders close to the market price. “The bulls still need to convince the market that the bear phase has ended,” he said.

Analysts at Bitunix observed similar dynamics in market structure. The advance toward $74,000 triggered waves of short liquidations, while clusters of long liquidations are concentrated around $70,000. Additional liquidity pools are located near $64,000, suggesting a clearly defined range for the next major move.

Despite the pullback, weekly performance for major cryptocurrencies remains positive. Bitcoin is still up about 5.4% over the past seven days. Ether has gained roughly 2.7% to around $2,080, while BNB has added about 3.1% to $648. Solana rose roughly 2.1% to $88.39. Among the laggards, Dogecoin fell about 3.7% for the week, while XRP slipped roughly 0.2%.

The broader macroeconomic backdrop, however, remains uncertain. Asia’s benchmark equity gauge tracked by MSCI has fallen about 6.4% since the Iran conflict intensified and is on track for its worst weekly performance since March 2020. Meanwhile, the U.S. dollar is heading for its strongest week since November 2024, while oil prices are recording their biggest weekly surge since 2022 — conditions that typically weigh on risk assets such as cryptocurrencies.

Some stabilization emerged on Friday. Asian equities recovered early losses as the dollar weakened and crude oil prices dipped following reports that the U.S. government was considering measures to address rising energy costs.

Geopolitical risks remain unresolved, however. The United States Senate failed to block continued military operations against Iran authorized by Donald Trump, leaving the duration and economic impact of the conflict uncertain. Defense Secretary Pete Hegseth has suggested military operations could last three to eight weeks, while shipping disruptions around the Strait of Hormuz continue to threaten energy markets.

For traders watching bitcoin’s next move, the $70,000 level will be a critical test. That area served as resistance for roughly a month before the recent breakout. If the price holds above it, the rally could regain momentum. If it fails, the market may once again look toward the $64,000 support zone.