Bitcoin Price Drops as Iran Rejects Talks, $62K Support at Risk

Bitcoin started the week under pressure, falling to the $62,229 level after seeing a liquidation of $146.66 million. This came even after U.S. President Donald Trump announced that he had canceled a planned military strike on Iran to give diplomacy another chance. 

Top crypto analysts suggest that BTC is trapped between two major liquidity zones, with its next move likely to decide the market direction.

Trump’s Iran Decision Failed to Lift Bitcoin

Bitcoin is down 1.35% over the past 24 hours, trading near $62,560, while the overall crypto market has also weakened, with total market capitalization falling 1.14% to $2.15 trillion.

The market first reacted positively after Trump said Iran had backed away after seeing the scale of a planned U.S. attack.

“They KNEW the extent of the attack, because they saw it FORMING.” “Negotiations begin on Monday afternoon.”

Following his comments, Brent crude oil dropped more than 5.33% to around $80 per barrel.

Then Bitcoin climbed toward $63,700, but the rally quickly faded after Iran denied that any talks with the U.S. were taking place.

Iranian Foreign Ministry spokesperson Esmaeil Baghaei said,

“We are not currently holding any talks with the American side.”

He added that discussions with Oman are only about creating a temporary shipping route through the Strait of Hormuz.

Leverage Is Rising While Traders Stay Cautious

While bitcoin prices are falling, trading activity is increasing. Spot trading volume has climbed 15.87%, while perpetual futures open interest has jumped 27.46% to $377.89 billion. 

This shows that more leveraged positions are entering the market, which could lead to bigger price swings.

Bitcoin is also moving closely with traditional safe-haven assets. Over the past week, it has shown a 61% correlation with gold, suggesting investors are reacting to the same global economic and geopolitical concerns.

Bitcoin Sits Between $64K and $62K Liquidity Zones

At the same time, Crypto trader The Martini Guy says Bitcoin is now trading between two key liquidity areas shown on Glassnode’s liquidation heatmaps.

The 12-hour heatmap shows a large cluster of short liquidations around $64,000. If Bitcoin moves higher, this could trigger a wave of short liquidations that may push prices up faster.

At the same time, the three day heatmap shows strong liquidity sitting near $62,000, creating an important support zone.

For now, Bitcoin remains stuck between these two levels.

If BTC falls below $62,000, selling pressure could increase and drag the price toward $60,000. On the upside, Bitcoin needs to reclaim $63,500 first, while a break above $64,000 could open the door for a stronger recovery.