Bitcoin (BTC) slid below $66,000 on Wednesday as a wave of forced selling triggered $1.84 billion in liquidations and pushed market sentiment into extreme fear.
Key Points:
- Bitcoin lost a major support level as $1.84 billion in liquidations swept the market in 24 hours.
- A break under $65,000 could open a path toward $60,000 or even $50,000, traders warn.
- Large wallets sold into the slide while the smallest holders quietly kept buying.
Bitcoin Breaks Key Support
The selloff gathered pace after the price lost the $70,607 level, a floor that had absorbed several recovery attempts. Once that support broke, leveraged long positions turned vulnerable, and forced selling accelerated the decline. The cryptocurrency fell from above $71,000 toward roughly $65,700 in a single session.
Total crypto liquidations reached $1.84 billion over 24 hours, the largest wipeout since Feb. 5, exchange data confirmed. Bitcoin alone accounted for $883.79 million of that figure, most of it long positions.
When prices fall quickly, exchanges close leveraged trades automatically, which feeds the slide.
Buyers now face a critical test near the $65,000 to $66,000 demand zone.
Also Read: Analyst Warns Bitcoin Faces A $42K Plunge Before The Next Bull Run
Bitcoin Fear Deepens
Social media sentiment soured as the drop deepened, with bearish commentary outpacing bullish chatter. The shift dragged the positive to negative ratio below 1.0, a reading tied to extreme fear.
Many traders now expect a move under $60,000, and some brace for $50,000.
That gloom may carry a contrarian signal. Stretches of overwhelming pessimism have often marked retail capitulation rather than the start of a deeper slide. If fear peaks while selling slows, a relief bounce could follow.
Heavy long positioning had built up while prices stalled, which left the market exposed once support cracked.
Bitcoin Whales Sell Into Weakness
Large holders shaped the move as Bitcoin fell about 13% over the week. Wallets holding between 10 and 10,000 coins cut their balances by 24,602 BTC.
Smaller wallets, those holding under 0.01 BTC, added 61 coins over the same stretch. The divergence matters because retail tends to buy as prices fall, while bigger investors steer liquidity.
The drop caps a bruising stretch for the asset, which traded near $72,800 as recently as Jun. 2. Spot Bitcoin ETFs have bled cash for weeks, with several May sessions topping $200 million in outflows. Until that demand returns, a durable recovery looks hard to pin down.
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