Is Bitcoin’s drop to $79K a bear trap as Hormuz tensions escalate?

• Bitcoin retreated amid clashes in the Strait of Hormuz and rising oil prices.
• Analysts argue that a limited appetite for full‑scale escalation caps downside risk.
• Bulls aim for a rebound toward $82,000, but bears could target a breakdown below $78,000.

Bitcoin dropped to around $79,200 in early trading on Friday as fresh military skirmishes in the Strait of Hormuz rattled global risk assets.

The crypto bellwether was witnessing a sharp intraday pullback after a brief run above $80,000, with the latest price swing highlighting prevailing weakness amid potential geopolitical shocks.

However, despite this outlook, is a classic “bear trap” in play?

Iran ceasefire cracks dent Bitcoin momentum

Bitcoin rallied above $82,500 on Monday, igniting further bullish sentiment across the broader cryptocurrency market.

However, BTC has reversed as selling pressure resurfaced, dropping to support near $79,200.

The downturn coincides with fresh clashes in the Strait of Hormuz after Iran accused the United States of striking an oil tanker, prompting retaliatory strikes by the Islamic Revolutionary Guard Corps (IRGC) against US warships.

The US says it respond...