Bitcoin has experienced a severe sell-off, breaking below key support levels near $74,000 and $65,000 to test a critical demand zone around $60,000. This decline followed a rejection at a descending 200-day moving average near $82,000, invalidating a previous recovery channel. On-chain data indicates investors are increasingly selling at a loss, reflecting deteriorating market sentiment.
Bitcoin remains under heavy selling pressure after crashing below multiple key support levels. The recent rejection from the descending 200-day moving average triggered a sharp sell-off that pushed BTC back toward a major demand zone around $60,000.
On the daily timeframe, Bitcoin confirmed a significant bearish breakdown after falling below both an ascending channel and the 100-day moving average near $74,000. The price is now testing a major support block at $60,000, which previously acted as a strong rebound area.
The 4-hour chart highlights the severity of the recent breakdown as the $65,000 support area also gave way. This area is currently preventing further downside and has already attracted some buying interest.
An important observation comes from the RSI, which has formed a mild bullish divergence in extremely oversold conditions. This suggests bearish momentum may be weakening in the short term and could support a temporary rebound.
However, the market continues to print lower highs and lower lows. As long as BTC remains below the broken support levels at $65,000 and $74,000, any recovery is likely to be viewed as a corrective move.
The Adjusted Spent Output Profit Ratio (aSOPR) has fallen below the critical 1.0 threshold. This shift suggests that a larger portion of investors is now exiting positions at a loss, a behavior commonly associated with bearish market phases.
While persistent readings below 1 often accompany downtrends, they can also signal the later stages of a corrective phase. Therefore, traders should closely monitor whether aSOPR can reclaim the 1.0 level.
For now, both price action and on-chain data continue to favor the sellers. The $60,000 support region remains the key battleground that will likely determine Bitcoin’s next major directional move.
