Bitcoin’s selloff accelerated as the price broke below key support levels, while leveraged crypto liquidations reached their highest daily level since January 2026. Market data showed about $1.8 billion in leveraged positions liquidated in one day, reflecting forced closures across Bitcoin and altcoin markets.
BTC has moved sharply lower after losing the $65,000 monthly EMA50 support level. The move added pressure to a market already dealing with spot Bitcoin ETF outflows, weaker liquidity, rising macro concerns, and capital rotation toward artificial intelligence stocks.
Bitget CEO Gracy Chen said Bitcoin’s latest decline should not be viewed only through a bearish lens but argued that the risks cannot be ignored. She pointed to 13 consecutive days of spot Bitcoin ETF net outflows totaling $4.37 billion, the longest continuous outflow streak on record.
Bitcoin Loses $65K Support as ETF Outflows Continue
Bitcoin’s break below $65,000 placed attention to lower technical levels. Chen said the next key support sits near the 50-month SMA at $59,000, followed by a wider support range between $52,000 and $48,000.
Ali Charts also pointed to Bitcoin’s MVRV pricing bands, saying the breakdown below $72,000 left BTC vulnerable. Based on that model, the next major support area sits between $54,000 and $50,000.
The decline comes while U.S. equity indexes remain strong. Chen noted that Bitcoin is falling as the S&P 500 and Nasdaq trade at record highs, with institutional capital moving toward AI-related assets rather than crypto. She cited the view that BTC is currently “stuck in the middle,” lacking the strongest safe-haven demand while also trailing high-growth equity themes.
She also listed several pressures weighing on Bitcoin, including rising CPI concerns, lower expectations for Federal Reserve rate cuts, continuing ETF outflows, pressure tied to digital asset treasury dividend products, and upcoming IPOs from SpaceX, OpenAI, and Anthropic, which could draw more capital toward public equity markets.
Liquidations and Distribution Raise Market Stress
The liquidation total of $1.8 billion shows how quickly leveraged positioning unwound as BTC moved lower. Forced selling can increase volatility because traders using borrowed funds are automatically closed out when margin levels fail.
CryptoQuant CEO Ki Young Ju described the current phase as a large transfer of Bitcoin ownership. He said Bitcoin investors’ average cost basis is near $53,000 and noted that previous bear markets ended only after the price moved to a realized price below.
Source: Cryptoquant
Ju pointed to the scale of supply absorbed since the last cycle. Since January 2023, Strategy has bought 711,206 BTC and sold only 32 BTC, removing 711,174 BTC from circulation. Since March 2024, when Bitcoin was also around $63,000, ETFs absorbed 509,102 BTC and Strategy bought 650,706 BTC, for a combined 1,240,808 BTC.
That figure is larger than the estimated 1 million BTC held by Satoshi Nakamoto and close to half of exchange reserves, which Ju placed near 2.7 million BTC. He said the return to the same price level despite that absorption points to unusually strong selling pressure.
Analyst Watch $59K, $54K and $50K Zones
Michaël van de Poppe said Bitcoin has returned to the 200-week moving average for a support test. He noted that this area marked cycle bottoms in 2015, 2018 and 2020, while the market fell below it during the 2022 FTX collapse.
Source: X
He also said Bitcoin’s daily RSI has reached levels similar to the COVID-19 crash and the February 2026 decline. From his view, the area may be watched by long-term buyers, but continued weakness in Strategy-linked preferred product STRC could keep pressure on BTC.
Chen also referenced Strategy’s sale of 32 BTC at around $77,000, noting that the last time Michael Saylor’s company sold Bitcoin in 2022, it occurred near the prior cycle bottom. She said BTC later fell below $62,000, raising the question of whether the market is nearing a local bottom or preparing for another leg lower.
