Bitcoin has crashed below the important 69k level.
Why does this matter?
69k was the previous cycle high. It also acted as resistance on the way up this cycle. A lot of volume traded here, which makes it one of the most watched levels on the entire chart. Because of that, many traders expect a bounce, or at least a serious reaction.
But this drop is not happening in isolation.
At the same time, we are dealing with rumors of Binance insolvency, talk about Vitalik selling ETH, jokes and speculation about Epstein’s early Bitcoin involvement, and even treasury companies starting to sell.
So what is actually going on?
Let’s take a look.
Bitcoin crashes below 69k, what just happened
Bitcoin fell below $70,000 for the first time in over a year, sliding to levels last seen in November 2024. At its lows, price traded around $67,000, marking a sharp drop of more than 8% on the day.
This move extended a broader decline that started after Bitcoin topped in October. While the downtrend had already been in place, the selling accelerated over the weekend due to a large wave of liquidations across the crypto market.
When leverage gets flushed, price does not move gently. It cascades.
Liquidations, leverage, and macro pressure
One of the key drivers behind this crash is the unwinding of leveraged positions. As price moved lower, long positions were forced to close, pushing price down even further. This type of move feeds on itself.
On top of that, macro uncertainty has returned.
Markets reacted negatively to concerns around tighter liquidity, rising borrowing costs, and a more restrictive monetary backdrop. Even though interest rates have technically been cut, the messaging remains hawkish. That combination is toxic for risk assets.
Crypto, despite the “digital gold” narrative, still trades like a high-beta risk asset during stress.
Is this a correction or a deeper reset
Some analysts believe the current move could be more than a short-term correction. Historically, Bitcoin has gone through violent rallies followed by deep, time-consuming pullbacks.
Several market observers now argue that this looks less like a quick dip and more like a transition phase. These reset periods usually take months, not weeks.
That does not mean price has to collapse immediately. It does mean volatility stays elevated and patience becomes a real edge.
Extreme downside targets enter the conversation
As fear increases, downside targets always get more aggressive.
One of the more eye-catching forecasts suggests Bitcoin could fall as low as $38,000. This view is based on a trend line drawn across the lows of every major Bitcoin crash since 2010.
Bitcoin dropped 93% in 2011, 84% in 2015, 83% in 2018, and 76% in 2022. Connecting those lows creates an upward-sloping line that currently points toward the high-30k range.
Is that guaranteed? Of course not.
But when these targets start circulating, it tells you sentiment has shifted fast.
The “Benjamin Button” Bitcoin theory
The bearish argument is often explained using a strange but fitting analogy.
Bitcoin used to strengthen as the dollar weakened and global liquidity expanded. Fixed supply, endless money printing, simple math.
Since 2025, that relationship appears to have flipped. Bitcoin has started weakening alongside tighter liquidity and stronger correlations to tech stocks and the Nasdaq.
In other words, Bitcoin stopped acting like an escape from the system and started behaving like part of it. That shift matters.
Leveraged longs are rising, not falling
One interesting data point is coming from Bitfinex.
Margin long positions have surged to their highest level in roughly two years, climbing to around 77,000 BTC. That is a massive build in leveraged bullish exposure while price is falling.
Historically, this setup often appears during market stress. It shows dip buying pressure, but it does not usually mark an immediate bottom.
In simple terms, too many people are still confident.
Why treasury companies and DATs matter
We’ve said this before, and it matters more now than ever.
Tracking what treasury companies and DATs are doing is crucial. When they were buying Bitcoin aggressively, it added fuel to the upside. It created confidence, headlines, and momentum.
When they start selling, the signal flips.
Recently, World Liberty Financial sold 73 WBTC, worth roughly $5 million, right around the $69,000 level. That is not catastrophic on its own, but it is symbolic.
If more treasury companies follow, it changes market psychology. Investors pay attention to who is distributing, not just who is buying.
The bigger picture looks ugly
On October 6th, the total crypto market cap peaked at $4.3 trillion.
Today, it sits around $2.3 trillion.
That means roughly $2 trillion in value has been wiped out in just four months. Almost half of the entire market disappeared.
Bear markets rarely announce themselves politely. They arrive when most people are still debating whether they exist.
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My trade and how I’m approaching this
For long-term DCA, I’m scaling slowly. I am not aggressive here. I’d rather wait until late summer to see where things settle.
For trading, this 69k level is extremely important. There is real action here. If volume and momentum step in, I’m open to longing reactions. If price keeps chopping lower, I’ll wait for a clearer bottom to form. If you’re trading this, remember position size is key for a winning trader.
I’m writing this fast because I want to watch the chart, not force trades.
Some trader friends are already spot buying here, planning to hold for one to four weeks. Their logic is simple. This level matters, and rebounds from here can be sharp. I understand that approach.
My style is different. I prefer either long-term positioning or short-term scalping. The middle ground doesn’t suit me.
Final words
We have been vocal about selling into strength. We have also been vocal about patience.
This is why.
Big liquidation events punish overconfidence. Waiting for confirmation keeps you alive. The goal is not to catch every move. The goal is to avoid the moves that wipe you out.
Bitcoin 69k is the line in the sand. How price reacts here will tell us a lot about what comes next.
If you enjoyed this blog, check out our blog on when it’s best to avoid trading.
As always, don’t forget to claim your bonus below on Bybit. See you next time!
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