Bitcoin’s value has continued its downward correction, slipping below crucial psychological and technical thresholds as investors grapple with emerging economic challenges and internal market factors.
Throughout the weekend into Monday, Bitcoin’s price declined further, reflecting a growing sense of caution among traders.
On Sunday evening, Bitcoin breached the $65,000 support level for the first time in weeks, experiencing a swift 5% drop within approximately two hours. This sharp movement pushed $BTC below $65,000 amid thin liquidity and an absence of strong bullish drivers.
The decline was not triggered by any single event but resulted from a combination of technical fatigue, diminished buying pressure, and widespread risk aversion across global markets.
This fall beneath $65,000 has shifted focus toward lower support zones around the low $60,000s—areas that historically act as key psychological and structural pivot points influencing intraday volatility.
Between Monday and Tuesday, Bitcoin’s trading range narrowed as momentum weakened. Trading volumes remained relatively low compared to previous months, indicating hesitation among market participants to invest without new catalysts.
Bitcoin Under Pressure Amid Tepid Derivatives Activity
Market experts attribute Bitcoin’s recent fluctuations to broader global uncertainties coupled with constrained liquidity conditions.
“Bitcoin continues to serve as a barometer for worldwide events and liquidity,” explained Timot Lamarre from Unchained in an interview with Bitcoin Magazine. “Reduced liquidity combined with ongoing conflicts creates an environment where Bitcoin struggles to maintain its status as a dependable asset amid chaos. The ability to transfer wealth without counterparty risk remains undervalued.”
Interestingly enough, institutional investments contrasted somewhat against this bearish trend. Strategy—the corporate entity led by Michael Saylor—marked its 100th bitcoin purchase by acquiring roughly 592 $BTC, averaging about $67,286 per coin despite overall price declines.
Nevertheless,the bearish sentiment persists. Should prices fail to reclaim levels above mid-$65K soon,the path could open toward testing the critical $60K zone—a breach here might trigger intensified selling pressure from short-term traders reacting swiftly.
Additionally analysts monitoring derivatives markets observe that current conditions reflect cautious trading behavior:
“The derivatives sector has settled into more defensive territory,” noted Bitfinex analysts speaking with Bitcoin Magazine. “Without previously crowded long positions,we see significantly less risk of cascading liquidations on downside moves.But this comes at cost: upward momentum can’t rely solely on short-covering anymore.For sustained recovery,funding rates must stabilize alongside genuine spot demand rather than just mechanical squeezes occurring in environments light on leverage.”
This article titled “Bitcoin Price Drifts Lower to $60,000 as Market Signals Wane, Traders Eye Support Levels” originally appeared on Bitcoin Magazine authored by Micah Zimmerman.