Bitcoin’s violent price swings continued this week, with the asset once again slipping below the $70,000 level after failing to sustain a rebound from recent lows.
- Bitcoin has fallen back below $70,000 after a rapid swing from $60,000 to $72,000 earlier this week.
- The $65,000 level is emerging as a critical support zone, with a breakdown risking a move toward $55,700-$58,200.
- Negative ETF flows and fading political-driven momentum are reinforcing a broader capitulation narrative.
The move underscores growing stress across crypto markets as traders digest heavy liquidation pressure and weakening macro-driven narratives.
Earlier this week, Bitcoin briefly collapsed to around $60,000 before staging a sharp recovery toward $72,000. That bounce, however, proved short-lived. By the end of the week, BTC had rolled over again, erasing gains and falling back under $70,000 as selling pressure returned.
Market data suggests the initial crash was driven by forced liquidations rather than discretionary selling. Analysts estimate that more than $840 million worth of leveraged positions were wiped out during the downturn, with long positions accounting for a large share of the damage. The scale and speed of the move point to structural stress in derivatives markets rather than a simple shift in sentiment.
Technical indicators reflect the strain. Momentum remains fragile, with RSI still recovering from deeply oversold levels and MACD showing only tentative signs of stabilization. While short-term relief rallies have emerged, follow-through buying has been limited, leaving Bitcoin vulnerable to renewed downside.
A critical level now sits near $65,000. Traders are closely monitoring this zone, as a decisive breakdown could reopen the door to Bitcoin’s previous bear market floor between roughly $55,700 and $58,200. Failure to defend $65,000 would likely trigger another wave of liquidations and force longer-term holders to reassess risk.
Beyond technicals, broader market dynamics are also weighing on price action. Spot Bitcoin ETF flows have turned negative again, removing a key source of structural demand. At the same time, momentum tied to the so-called “Trump trade” has faded, reducing speculative inflows that previously supported risk assets.
Several market observers now describe current conditions as a phase of capitulation rather than a clean correction. In that framework, volatility may persist for weeks or even months before a durable base is formed, particularly if leverage continues to unwind and macro uncertainty remains elevated.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
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Source: https://coindoo.com/market/bitcoin-slips-below-70000-again-as-the-top-cryptocurrency-tests-market-confidence/
