Bitcoin Slips Below $70,000 Again as the Top Cryptocurrency Tests Market Confidence

Bitcoins 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.

Key takeaways

• 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 Bitcoins 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.

Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.