In-Depth Analysis of the Recent Crypto Market Decline
Our editorial team, consisting of top industry experts and experienced editors, ensures that our content is accurate and reliable. Read our Ad Disclosure for more information.
Market Turmoil: Bitcoin and Ethereum Face Intensifying Selling Pressure
The cryptocurrency market is currently experiencing a significant downturn, with Bitcoin (BTC) and Ethereum (ETH) falling below important price thresholds, sparking widespread liquidations.
Advertisement Banner
Initially, the decline appeared as a minor correction. However, it has evolved into a substantial deleveraging event. The combination of diminishing momentum, reduced institutional interest, and cautious investor sentiment has put considerable pressure on major digital currencies.
Bitcoin has been fluctuating between the $70,000 and $71,000 range after a brief drop to levels unseen since late 2024. Ethereum has mirrored this trend, approaching the $2,100 mark and testing lower intraday values. As these cryptocurrencies breached their technical support levels, leveraged positions were liquidated, compounding the losses.
Bitcoin Faces Critical Support Breach with Rising Liquidations
According to various data-tracking platforms, over $860 million in crypto positions were liquidated within just 24 hours, with Bitcoin representing the largest portion. The dominance of long positions in this wipeout highlights the market’s previous bullish positioning before the downturn.
Bitcoin’s dip below its 365-day moving average has intensified the bearish outlook. On-chain analysts have observed that since BTC fell below this long-term trend line in November 2025, its decline has been more rapid than during similar periods in the 2022 bear market.
Moreover, exchange-traded fund (ETF) flows have weakened. U.S. spot Bitcoin ETFs have shifted from net inflows to net outflows as of early 2026, eliminating a crucial demand source. Market participants are now closely monitoring the $70,000 level. While some experts view it as a potential support, others caution that a sustained break could lead to a deeper decline towards the $60,000 range if market sentiment does not improve.
Ethereum Deleveraging Amplifies Market Struggles
Ethereum, too, has been affected by the ongoing market turmoil. Recent sessions have witnessed over $200 million in ETH-related liquidations as the price approaches the $2,000 threshold.
Significant holders have also taken steps to mitigate risk. On-chain data reveals that Trend Research offloaded approximately 188,500 ETH over several days and repaid substantial amounts in stablecoins to reduce leverage, thereby lowering its liquidation thresholds.
This deleveraging has shifted focus to potential risk zones between $1,576 and $1,682, where forced liquidations could occur if prices continue to fall.
Weakened Sentiment Across the Cryptocurrency Sector
The impact of the downturn extends beyond Bitcoin and Ethereum, affecting major altcoins like BNB, Solana, and Dogecoin, which have recorded daily losses ranging from 6% to 11%. The total cryptocurrency market capitalization has dwindled to approximately $2.4 to $2.5 trillion, while open interest in derivatives markets continues to decrease, indicating a waning risk appetite.
Sentiment indicators reflect the growing caution among investors. The Fear and Greed Index has plunged further into “extreme fear,” while concerns regarding stablecoin stability, particularly temporary deviations in USDT’s peg, have introduced additional uncertainty. Traders are keenly observing whether key support levels can hold, or if further liquidations are imminent.
Editorial Integrity in Our Reporting
At bitcoinist, our editorial process is committed to providing meticulously researched, precise, and unbiased content. We adhere to stringent sourcing standards, and each article undergoes a thorough review by our team of leading technology experts and seasoned editors. This rigorous process ensures that our content remains valuable, relevant, and trustworthy for our readers.
“`
