Bitcoin’s $65,200 Geopolitical Floor Holds Firm as Houthis Enter Iran War, Sparking Rebound

Bitcoin plunged to a two-month low of $65,112 early Monday as Iran-backed Houthi forces officially entered the widening 2026 conflict, triggering a sharp flight from risk assets. The cryptocurrency staged a rapid $2,300 recovery to $67,402 after defending the critical $65,200 support level—now testing whether this marks a durable geopolitical floor or merely delays a deeper market correction.

A Five-Week Iran War, a One-Night Escalation, and What Bitcoin Said

The Houthi entry wasn’t the only escalation overnight. The Wall Street Journal reported President Trump is weighing a military operation to remove enriched uranium from Iran, while additional U.S. ground troops arrived in the region.

BREAKING: Yemen's Houthi Group, an Iranian ally, says it is "ready to intervene" in the Iran War if new allies join the US and Israel or if the Red Sea is used to launch attacks on Iran.

The Houthis have strong influence over the Bab al-Mandab Strait which controls over ~6… pic.twitter.com/GjWAYkSvQA

Iran also struck two aluminum production facilities, sending aluminum up as much as 6% and extending the war’s economic damage well beyond oil into industrial supply chains.

Brent crude rose 2.5% to approximately $115 a barrel – now up roughly 90% year-to-date. South Korea’s benchmark index fell 3.2%, Japan’s Nikkei dropped 3.4%, and S&P 500 futures pared losses to trade roughly flat by the Asian session open.

Against that backdrop, Bitcoin’s defense of the $65,000–$67,000 zone stands as one of the cleaner relative-strength signals in the current macro cycle.

The inflation read here matters for rate policy. Oil at $115 and aluminum spiking on direct supply disruptions broadens the inflationary impulse beyond energy – which pushes the Fed’s rate-cut timeline further out, drains yield on non-yielding assets, and historically pressures BTC.

That the floor held anyway is the data point institutional desks will be sitting with this week.

Bitcoin’s Geopolitical Floor: Can $65,000 Hold If Tensions Escalate Further?

That $65,000 low is not random, it lines up with the $64,000 level from February 28 when the U.S.–Israel strikes on Iran triggered a $300 million liquidation cascade, and since then Bitcoin had been printing clean higher lows from $64K to $70.5K before Monday finally broke that structure for the first time in five weeks.

This matters more than it looks because momentum is already weak with RSI drifting near oversold without a full reset while the 50-day EMA around $67K has flipped into resistance instead of support.

At the same time, the flush cleared out overleveraged longs as funding rates briefly turned negative, setting up a bounce, but sentiment is still crushed with the Fear and Greed Index at 25

Now everything comes down to whether that $65,000 level actually holds under pressure or if this was just a temporary bounce that fades on the next real test.