Crypto markets have experienced a dramatic sell-off driven by intensifying geopolitical tensions between Israel and Iran. Fear-driven capitulation has fueled widespread losses across the sector, with Bitcoin leading the downward trend. Binance’s trading volume data reveals consistent selling pressure, signaling a dominance of bearish activity. 7-hour moving average analysis corroborates this trend, demonstrating sustained downside momentum since June 12th. This recent sell-off mirrors historical patterns where such extreme negative net taker volume coincided with short-term price bottoms earlier in the month. A similar pattern emerged on June 6th, with a 4% Bitcoin rebound following a week of selling activity. The timing of this decline aligns with global market reactions to the escalating conflict between Israel and Iran, leading to a decline in equity markets and other risk assets. This situation has triggered fear-driven liquidations among traders, followed by rapid unwinding of long positions, further accelerating the price drop. Bitcoin’s inherent association with high risk assets made it especially vulnerable during this surge in uncertainty. While short-term volatility remains high, crypto market analysis suggests that this sell-off could be a sign of a local bottom formation. CryptoQuant’s insights point to a potential shift toward buying opportunities as overleveraged retail traders are exiting the market and large investors may be accumulating Bitcoin during the dip. Historical data supports this thesis, showing similar patterns in net taker imbalances have historically signaled short-term rebounds. Will this price drop mark the beginning of a significant correction or is it just a temporary dip before a long-term surge? This remains to be seen.