Bitcoin Analysis: BTC Plunges Below $70K

Bitcoin has come under heavy short-term pressure, with the price breaking sharply below the psychological 70k level during today’s session and accumulating a decline of more than 6.00%. This move reflects increasingly relevant selling pressure and a clear deterioration in short-term demand.

The decline comes as market appetite has weakened over recent sessions, while concerns grow that large crypto holders may be carrying out significant liquidations. The break below key psychological levels has continued to weigh on confidence and accelerate the loss of demand strength. For now, this environment is already affecting the stability of the market’s most important cryptocurrency and could keep selling pressure relevant over the coming trading sessions.

Is demand fading?

Over the past few weeks, demand for Bitcoin has lost significant strength. This has been especially visible in the institutional market, where Bitcoin ETFs have continued to record steady capital outflows. Now, there has not been a positive inflow since May 14, 2026, and the week began with another outflow of nearly $500 million from the ETF market. This suggests that institutional interest in the leading cryptocurrency has weakened considerably in the short term.

Source: theblock

However, this is not only about weaker institutional interest. Lower activity can also be seen across the broader Bitcoin market through recent movements in Open Interest, which measures the total number of open long and short positions. In recent sessions, this indicator has already been showing weakness below the $26 billion area, and the latest price decline suggests that part of this drop may be linked to long positions exiting the market, as Open Interest and BTC prices are falling at the same time.

Source: Cryptoquant

Both ETF flows and Open Interest show that the lack of demand is not just a one-day event, but rather a trend that has been building for several weeks. The loss of appeal has become more evident across different market participants and is now being reinforced by the break below the psychological 70k level.

Adding to this, MicroStrategy announced that it sold 32 Bitcoins during the final days of May. Although the amount is small compared with the company’s total holdings, the move is symbolic, as MicroStrategy has long been seen as an institutional player strongly aligned with Bitcoin accumulation. Signals like this can accelerate short-term distrust and reinforce the liquidations that had already been developing.

In this context, the loss of appeal is already visible in BTC market activity and may be creating a broader sense of distrust. For this reason, the current selling pressure could remain relevant over the coming trading sessions.

 

Market confidence returns to critical levels

Looking at the Crypto Fear and Greed Index, the indicator moved back near the 23-point area during the session. More importantly, it has entered “extreme fear” territory again, standing below last week’s levels and far from the readings seen one month ago. This confirms that the loss of short-term confidence has become an important factor for the market.

Source: Alternativeme

This behavior is key because, as long as sentiment remains in negative territory, it will be difficult to build a favorable environment for consistent crypto demand. If the index continues to decline, it could indicate that market perception is still deteriorating, limiting the possibility of a short-term demand recovery and keeping consistent selling pressure on BTC over the coming sessions.

 

Technical outlook for Bitcoin

Source: StoneX, Tradingview

• Major bearish trendline regains relevance: The recent weakness in Bitcoin has brought the short-term selling bias back into focus. More importantly, a long-term bearish trendline that has been present on the daily chart since 2025 is also regaining importance. This structure, which acted as the dominant pattern months ago, could become relevant again if selling pressure continues over the medium term. However, the speed of the recent decline may also be warning of a possible excess of selling pressure, which could leave room for short-term bullish corrections if the market attempts to stabilize.
   
• MACD: Now, the MACD histogram continues to expand below the neutral 0 level, suggesting that the strength of short-term moving averages is shifting further into bearish territory. If the indicator continues to deteriorate, it could point to a more dominant selling bias over the coming weeks.
   
• RSI: The RSI shows a similar picture, with the indicator remaining below the 50 level and reflecting bearish dominance in short-term momentum. However, the RSI has also fallen sharply below the 30 area, which is commonly associated with oversold conditions. This may be warning of excessive selling pressure in recent Bitcoin movements and could open the door to mild bullish corrections over the coming sessions.
   

Key levels:

• 75,300 – Important resistance: A recent high area located near the 50-period moving average. A recovery above this level could reactivate a forgotten buying bias and open room for more consistent buying pressure over the coming trading sessions.
   
• 70,000 – Near-term barrier: A key psychological level and one of the most important short-term reference areas. This zone could act as a tentative barrier if bullish corrections appear, especially after the recent breakdown and the strong selling pressure seen on the chart.
   
• 64,000 – Definitive support: This area corresponds to the 2026 lows and stands as Bitcoin’s main downside barrier for the year. Moves toward this level could reaffirm the dominance of the selling bias and bring the major bearish trendline back as the dominant structure over the coming weeks.
   

Written by Julian Pineda, CFA, CMT – Market Analyst

Follow him on: @julianpineda25