Bitcoin has come under renewed pressure after falling below a key cost basis level that analysts believe was crucial for maintaining bullish momentum. Market observers now warn that the leading cryptocurrency could face a deeper correction if it fails to reclaim this important zone.
According to on chain analytics platform Swissblock, Bitcoin is currently approaching a critical point that could determine its near term direction. The firm noted that BTC’s inability to hold the Cost Basis Zone has already triggered a significant decline.
While price action within this range initially suggested a healthy consolidation phase, Bitcoin failed to confirm strength and was unable to successfully reclaim the zone after losing it. As a result, analysts say the market outlook has shifted from consolidation to increased breakdown risk.
Why the Cost Basis Zone Matters
Swissblock identifies the Cost Basis Zone between approximately $72,000 and $79,000. This range reflects the average purchase price of recent Bitcoin buyers, particularly short term holders, making it a significant support and resistance area.
The firm emphasized that Bitcoin can only regain a bullish structure if it re enters this zone and demonstrates strong buying momentum.
On Chain Data Points to Growing Weakness
Blockchain analytics company Glassnode also highlighted increasing pressure on Bitcoin. The firm reported that sellers continue to dominate the spot market while ETF outflows have accelerated to roughly $1.3 billion. At the same time, fresh capital entering the market has slowed considerably.
According to Glassnode, market structure has weakened and short term momentum currently favors further downside movement.
Bitcoin Capital shared a similar assessment, noting that Bitcoin’s recent recovery attempt stalled precisely at the short term holder cost basis before reversing lower. Several important on chain indicators have also deteriorated, reinforcing concerns about a failed recovery and an ongoing corrective phase.
Market commentator Sykodelic described Bitcoin’s performance relative to other financial assets as historically weak. He argued that Bitcoin is now the only major macro asset that is not currently expanding, adding that it has become increasingly disconnected from broader market trends.
Bitcoin Drops to $70,000
Bitcoin fell to around $70,000 during early Asian trading hours on Tuesday, representing a daily decline of nearly 4%.
The cryptocurrency has now lost approximately 8% over the past week and risks slipping back into the $60,000 range, levels not seen since early April.
Although Bitcoin remains within the broader trading range it has maintained since February, analysts warn that the next major support area could be near $65,000, which marks the lower boundary of that range.
Strategy Sale Adds to Negative Sentiment
Adding to the cautious mood, a recent filing with the SEC revealed that Michael Saylor’s company, Strategy, sold 32 BTC in late May for approximately $2.5 million.
While the transaction was relatively small compared with the firm’s overall Bitcoin holdings, the disclosure has further contributed to the bearish sentiment currently weighing on the market.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
