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.
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