Bitcoin fell below $70,000 for the first time since April amid a renewed distribution phase. Onchain data indicates short-term holders are selling at a loss, while spot Bitcoin ETFs have seen 11 consecutive days of outflows. Market sentiment has plunged back into “extreme fear,” though a surge in large transactions suggests potential whale accumulation.
Bitcoin sellers took control during European trading on Tuesday. The drop below $70,000 came as hopes for a US-Iran ceasefire faded.
Analysts said Bitcoin has entered another distribution phase due to high selling pressure. This is evidenced by short-term holders realizing losses and rising exchange inflows.
The Short-Term Holder SOPR metric dropped below 1, showing renewed loss realization. CryptoQuant analyst Rei Researcher said a mid-term holder group has also activated potential selling positions.
This group’s exchange inflow volume presents a huge barrier to recovery momentum. The analyst warned that “This exchange inflow volume needs to be well absorbed; otherwise, $BTC will face deeper correction waves.”
Glassnode said Bitcoin’s realized profit/loss ratio has deteriorated significantly. The firm concluded that “Bitcoin is in a distribution phase with deteriorating breadth.”
The Crypto Fear and Greed Index hit 23, signaling “extreme fear.” This follows Bitcoin’s 9.3% weekly drop and persistent spot ETF outflows.
Spot Bitcoin ETFs have recorded 11 straight days of outflows. The largest single-day outflow was $733.4 million on May 27.
Despite the weakness, some signs suggest accumulation by large investors. Santiment said the network saw its highest volume of transactions over $100,000 since late April.
The firm noted that “This is historically a strong sign of whale accumulation.” This activity occurred as the price dipped below the $70,000 level.
