Bitcoin slipped below the $70,000 mark on Tuesday for the first time in two months, reaching as low as $69,631 according to Bitstamp data. While stock markets hovered near all-time highs, the ongoing weakness in crypto assets stood out as a sharp contrast.
Intensified selling pressure emerges
The BTC/USD pair diverged noticeably from the uptrend seen in equities, dropping roughly 2% over the day. This move underscored persistent short-term selling pressure and established a new base for bearish sentiment.
These sharp price swings rippled through leveraged positions in the crypto market. Data from CoinGlass showed that total liquidations across Bitcoin and altcoins neared $800 million in the past 24 hours. CoinGlass is widely used to track liquidation volumes in crypto derivatives markets.
Trader Ardi observed that as pressure increased, breaking support levels across different timeframes typically sends prices towards the next significant liquidity zone. In his tracking, this zone sits around $68,700.
Analysts track the 200-day average
Market analysis group Material Indicators reported on Monday that one of its trading indicators pointed to a cautious outlook. The platform advised monitoring whether the current move signals a bottoming phase or the start of a fresh downward leg.
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AAPLThe same report noted that if the decline continues, attention could shift back to the 200-day simple moving average, a widely followed benchmark for identifying long-term market trends in technical analysis.
Mini glossary: The 200-day simple moving average reflects the average closing price of an asset over the most recent 200 days and is a common reference for assessing long-term support and resistance in markets.
Material Indicators pointed out that failure to defend the observed price range by buyers could worsen the outlook and push the market decisively into a deeper downtrend.
Geopolitical uncertainty and market divergence
Technical market patterns were not the only factor weighing on Bitcoin. Uncertainty regarding the ceasefire process between the US and Iran was also cited as influencing market sentiment. On Monday, analysts highlighted a low probability of agreement, although former US President Donald Trump later said negotiations were advancing rapidly.
Meanwhile, US equities painted a different picture. The S&P 500 set a new record above 7,600 points before pulling back slightly. According to The Kobeissi Letter, should the index maintain this momentum, it could register 10 consecutive weeks of gains for the first time since 1985.
The same report noted that stock market capitalization has grown by $11.7 trillion since March 30. This divergence has made the strong performance in traditional markets stand out even more against the cautious mood in crypto assets.
