Bitcoin neared its weakest levels in two months after declining for eight consecutive weeks, signaling a notable erosion in market appetite for risk. As of June 3, the largest cryptocurrency traded near $66,989, marking a weekly loss of over 10 percent. The persistent downtrend has led to heightened caution among investors heading into the weekend.
Whales intensify selling pressure
On chain analytics reveal that large holders have been driving the recent sell off. According to data from Santiment, wallets holding between 10 and 10,000 BTC—commonly referred to as whales and sharks—offloaded a total of 24,602 BTC within the past week. This group’s holdings dropped 18 percent over the same period. Santiment, known for its market sentiment and blockchain analytics, underscores how institutional activity often sets the tone during volatile periods.
The acceleration of large holder sales can prove decisive for short term price direction, especially when market depth is thin.
With Bitcoin slipping under the critical $70,000 threshold, many investors have moved to a more defensive stance. Market focus now shifts to whether the selling surge will subside as prices approach the $65,000 region. Analysts warn that continued trading below key support levels could make further downside more pronounced.
Limited buying from small investors
In contrast, smaller wallets—those holding less than 0.01 BTC—have added just 61 BTC over the past month, a modest 12 percent increase for this group. Yet, the scale of these purchases pales in comparison to the recent whale sell offs. While some retail investors apparently view lower prices as a buying opportunity, this demand is far from sufficient to alter the broader market mood on its own.
Santiment’s analysis highlights that a more sustainable recovery may require both whales to resume accumulation and retail buying to reach more meaningful levels. A shift in large and small holder behavior could signal groundwork for a more stable market bottom.
Sentiment and technical signals remain weak
Investor sentiment has also soured sharply. Citing recent figures, the widely watched Fear and Greed Index plunged to an “extreme fear” reading of 11 before rebounding slightly to 26, signaling widespread caution. Such depressed readings tend to coincide with forced liquidations, weaker leverage conditions, and a general move by investors to scale back risk exposure.
Broader crypto market data show the total market cap hovering around $2.40 trillion, with daily trading volume at $143.61 billion. Despite softening prices, elevated trading activity suggests participants remain engaged. Ethereum also slid by 5.36 percent on the day, settling near $1,872.40, while Bitcoin’s dominance held at 55.93 percent.
$65,000 region emerges as key support
Technically, Bitcoin has struggled to pierce the resistance band between $70,000 and $75,000. Analysts identify this zone as a stubborn barrier where fading momentum has become ever more apparent. The fact that Bitcoin remains below both its short and medium term moving averages underscores that sellers currently hold the upper hand.
A HODL Waves study shared by CryptoQuant points to the $65,000 zone as a likely candidate for a local bottom. As Bitcoin tests the upper end of this range, analysts indicate that $65,000 will serve as a crucial support level to monitor throughout the month.
Mini glossary: HODL Waves is an on chain metric tracking how long Bitcoin is held in wallets, offering insight into whether coins are being kept for the long term or moved for shorter term trading. This helps distinguish between short term selling pressure and longer term accumulation trends.
CryptoQuant’s data suggests the $65,000 level could form a local bottom for Bitcoin.
Analyst Trader Tardigrade points out that the daily RSI has slipped back into oversold territory. Historically, similar readings have coincided with strong rebound rallies. If the rising lows in the RSI persist, he believes Bitcoin may attempt a bullish reversal. However, if current supports are breached on a daily closing basis, attention could quickly shift toward the liquidity zones around $60,000.
