Bitcoin Price Prediction – Traders Brace for Bigger Correction to $65K as Key Support Broken

Highlights:

Bitcoin fell below $75,527 support as Iran conflict fears and ETF outflows hurt sentiment.
A reported $1 billion BlackRock ETF dark pool selloff added pressure on BTC.
BTC could drop toward $65,768, though new yield products may support demand.

Bitcoin (BTC) is in the red today, continuing the weakness it has shown over recent days. When writing, Bitcoin was trading at $73,332.34, down 3.28% in the day. Bitcoin trading volumes have risen even as the price has fallen, up 17.15% to $42.58 billion. Rising trading volumes when Bitcoin’s price is dropping suggest sellers are taking control as sentiment turns bearish. Such could mean more selloffs in the short to medium term. Multiple factors are driving the bearish outlook for Bitcoin in the short term.

Renewed Iran War Fears Pushing Bitcoin Price Lower

One of them is the renowned geopolitical tensions that have triggered a flight to safety. Earlier in the day, May 28, the US carried out attacks on Iranian positions at the Strait of Hormuz. Iran retaliated, triggering fears that the war could be back on. This led to Bitcoin and most risk-on assets correcting.

The correction saw Bitcoin lose a critical support at $75k, triggering fears that a much deeper correction could be coming in the short to medium term. This has added to the selloff even as other risk-on assets, such as stock indices, are showing signs of recovery.

Bitcoin ETF Selloffs Adding to Downside Pressure

Outside of events in the geopolitical space, the negative sentiment around Bitcoin has been exacerbated by the recent large selloff driven by ETFs. Earlier in the week, an investor sold over $1 billion of the BlackRock Bitcoin ETF in a dark pool. Some analysts have described this sale as one of the largest they have ever seen.

Breaking News: BlackRock just sold $1.3 billion in Bitcoin ETF shares through a dark pool, triggering eight straight days of institutional outflows and pushing the Fear and Greed Index to 28. When the biggest player quietly exits, retail investors should take notice.

— Dr Boyce Watkins – Wealth is Power (@drboycewatkins1) May 28, 2026

Such moves are driving fear that institutional capital is starting to move away from Bitcoin. The result is that retail capital, fearful of losses, could also cut its positions. Such moves, along with Bitcoin’s loss of a major support level, could embolden short sellers, further pushing the price lower.

Treasuries Cutting Back on Bitcoin Buying Adds to Weakness

Bitcoin’s downside pressure is also driven by the fact that treasuries are starting to feel the weight of debt. Data shows that many Bitcoin treasuries are shifting from continued accumulation to greater debt management.

The goal is to ensure that, amid price volatility, they can continue to manage their liabilities while maintaining a healthy liquidity position. As treasuries cut back and other factors add downside pressure on Bitcoin, the price could be headed much lower in the short term. However, some factors could not only stabilize the price but also send Bitcoin higher in the long term.

Strategy is still long Bitcoin in the biggest way possible, but retiring debt at a discount and holding dollar liquidity instead of using every available dollar to buy more BTC tells you they are thinking about survivability, liquidity, and future optionality. They are not… https://t.co/ntKsFRqIyZ

— EndGame Macro (@onechancefreedm) May 27, 2026

Exchange Move to Offer Bitcoin Yield Could Reignite Demand

One is that exchanges are starting to offer yield to Bitcoin holders. One exchange making headlines at the moment is Kraken, which has announced that it will allow Bitcoin holders to earn a 2.5% yield on their Bitcoin. This is a big deal, as it could draw in investors who are long-term believers in Bitcoin but also want yield. As more exchanges looking to compete with Kraken start offering similar services, Bitcoin demand could rocket. In the short term, Kraken’s move could help forestall any further corrections in Bitcoin.

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— Kraken Pro (@krakenpro) May 27, 2026

Technical Analysis – Bitcoin Price Trending Lower After Losing Support

Bitcoin is trending lower after breaking below the $75,527 support level. If bears sustain this momentum, Bitcoin could drop to $65,768 in the short term.

However, if bears lose momentum and Bitcoin pushes through to close above $75,527, a rally back to $82,256 could follow. Of these scenarios, a correction to $65,768 is more likely. That’s because of the selloffs in ETFs and growing outflows from Bitcoin ETFs. The renewed geopolitical fears around Iran could add to the downside pressure in the short term.