The cryptocurrency market faced a sharp uptick in selling pressure over the past 24 hours, with global market capitalization dropping by 5.4% to $2.37 trillion, according to CoinGecko data. During this slide, Bitcoin fell to $66,900, marking its lowest level since early April. Across social media platforms, risk appetite appeared to wane while investor sentiment deteriorated rapidly.
Liquidity crunch intensifies in Bitcoin
Bitcoin’s rapid descent, losing $8,500 in just three days and slipping from $74,000 down to $65,500, drew particular attention. On-chain analytics account CoinAnk highlighted that key support levels were quickly breached, and that significant liquidity beneath the current price had been mostly depleted. CoinAnk is known for sharing market data and in-depth cryptocurrency analysis.
Glossary: Liquidity refers to how easily an asset can be bought or sold without causing sharp price movements. A liquidity wall is an area where heavy buy or sell orders accumulate within a certain price range.
According to the same analysis, there is a large liquidity wall between $69,000 and $75,000, with peak demand in this zone reaching approximately $243.74 million. As the price declines, new short positions continue to pile up in this range, further impeding upward momentum for Bitcoin.
CoinAnk’s data reveals that significant liquidity beneath Bitcoin’s current price has been largely exhausted, while a concentrated cluster of $243.74 million in orders now sits between $69,000 and $75,000.
Sentiment and support levels under close watch
According to on-chain analytics firm Santiment, Bitcoin’s test of the $66,900 level coincided with a pronounced shift in social media sentiment into the “extreme fear” zone. The firm also identified Bitcoin sales by Michael Saylor-led Strategy as a catalyst behind the latest downturn. Santiment is respected for its market sentiment analysis and on-chain metrics.
Santiment observed that acute pessimism on social channels sometimes signals retail investors exiting the market—an environment that can occasionally precede short-lived price rebounds.
Market analyst Neel noted that gains accumulated over two months were wiped out in just 22 days. For Neel, $65,000 stands as a crucial support zone for Bitcoin, with stronger support at roughly $61,800 near the 200-week moving average. For Ethereum, key support levels were identified at $1,800 and $1,400.
| Asset | Watched Level | Remark |
|---|---|---|
| Bitcoin | $65,000 | Critical support |
| Bitcoin | $61,800 | Stronger support, near 200-week average |
| Ethereum | $1,800 | Initial support |
| Ethereum | $1,400 | Lower support zone |
Technical signals point to more weakness in altcoins
Analyst Aaron Dishner reported that Bitcoin ended Tuesday with a 6.5% decline, while the Relative Strength Index (RSI) dropped to 10, just above its 8.95 low from February 5. Dishner pointed out that downward momentum remains with sellers. Although trading volume increased, it still hasn’t matched the frenzy observed during the late January-early February selloff.
Dishner also noted that Ethereum is exhibiting even weaker technicals. On Tuesday, ETH fell 7.3% to hit its key support at $1,846, and the RSI retreated to 11.48. This suggests Ethereum may be under even greater downward pressure compared to Bitcoin.
There are also warning signs for major altcoins. Dishner stated that a second TBO breakdown was confirmed in XRP on Tuesday—a pattern last seen before a 30% slump. BNB has slipped to the lower band of its daily TBO cloud, SOL has recorded its first TBO break, and ADA has now logged its third major breach.
Glossary: RSI is a technical indicator measuring the speed and strength of price movements. TBO refers to a proprietary breakout model used by the analyst, but not further detailed here.
Mixed macro signals add uncertainty
Dishner also pointed out that Bitcoin dominance has dropped about 4% since mid May, and the daily RSI has sunk to an extremely low 5.56. In contrast, stablecoin market share has increased by 7.16%, signaling that investors are shifting into safer assets rather than seeing the dip as a buying opportunity.
On the macro front, the dollar index continues to hold firm while gold remains flat. Meanwhile, the PAXG/BTC ratio has risen as Bitcoin falls. Upward momentum persists in S&P futures, but technical momentum indicators present a negative divergence, highlighting the conflicting signals facing global investors at this volatile moment.
