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Bitcoin (BTC) experienced a four-day losing streak last week, falling from $73,000 to $66,100, marking its sharpest decline in over a month. While it rebounded 3.7% to $68,404 on March 9, analysts argue the broader consolidation pattern since late 2024 remains intact. Geopolitical tensions between the US and Iran, Trump-era tariff announcements, and forced liquidations of $240 million in long positions contributed to the selloff. The divergence between Bitcoin and gold—where gold rose 17% year-to-date while Bitcoin fell—has weakened the 'digital gold' narrative. Additionally, ETF outflows and whale selling exacerbated the decline, with on-chain data showing large holders moving BTC to exchanges. The selloff highlights Bitcoin's sensitivity to macroeconomic conditions, particularly liquidity tightening from delayed rate cut expectations. Traders must monitor geopolitical risks, tariff escalations, and on-chain activity for further clues. The $66,100 level now acts as a critical support zone, with a breakdown potentially targeting $50,000 by 2026. However, a rebound above $73,000 could signal a shift in sentiment. Analysts emphasize that structural shifts in Bitcoin's options market and ETF flows will be pivotal in shaping mid-term price action. For Gulf investors, the current volatility underscores the need for caution. Regional crypto markets may mirror global trends, especially as geopolitical tensions impact safe-haven flows. Key indicators to watch include the S&P 500 correlation (0.5-0.88 during stress periods) and on-chain metrics like large holder activity. The 2026 price prediction hinges on macroeconomic stability, regulatory developments, and Bitcoin's ability to reassert its 'digital gold' narrative.
