Bitcoin is trading down 2.54% at $64,868.51 over the past 24 hours, mirroring a broader 2.67% contraction in the total cryptocurrency market capitalization, which now sits at $2.23 trillion. This synchronized movement underscores that the current weakness is not isolated to Bitcoin but reflects a market-wide risk-off sentiment. The primary catalyst appears to be a combination of broad-based selling pressure and the unwinding of overextended leveraged long positions, with approximately $88.99 million in Bitcoin derivatives liquidated in the last day—of which $57.44 million were long positions. Adding to the complexity, perpetuals open interest actually rose 4.25% to $371.27 billion even as prices fell, suggesting that new short positions are being established or that traders are adding to longs amid the decline, both of which can intensify downward momentum in the near term.
From a technical perspective, the structure has turned decisively bearish. Bitcoin is now trading below both its 7-day simple moving average at $67,023 and its 30-day SMA at $73,170, confirming a shift in short-to-medium-term momentum. The Relative Strength Index (RSI14) has dipped to 31.68, placing the asset in oversold territory. While such conditions can sometimes precede a relief bounce, they are not, on their own, a reliable reversal signal. What stands out more significantly is the 174% surge in 24-hour spot trading volume to $50.49 billion, which points to high-conviction selling rather than passive drift. This confluence of breakdown levels, oversold readings, and elevated volume suggests the market may be experiencing a climax sell-off, though the path of least resistance remains lower until key resistance is reclaimed.
Looking ahead, the near-term trajectory hinges on Bitcoin’s ability to hold the $64,000 psychological and technical support zone. A decisive break below this level could open the door to a retest of the recent swing low near $60,074. Conversely, a reclaim of the 7-day SMA at $67,023 would signal a potential stabilization and could pave the way for a move toward the 38.2% Fibonacci retracement level around $78,840. Traders should also monitor the CMC Fear & Greed Index, currently anchored at an “Extreme Fear” reading of 11, for early signs of sentiment exhaustion. Until then, the market remains in a confirmed downtrend, searching for a durable floor amid ongoing deleveraging and macro uncertainty.
Source:: Bitcoin Under Pressure: Leverage Flush and Technical Breakdown Drive 2.5% Decline