I just saw some interesting movements in the crypto market this week. It seems investors are panicking because of the AI issues spreading from traditional stocks. Capital that usually flows into high-risk sectors is now fleeing, and that directly impacts the prices of Bitcoin and altcoins.

Bitcoin is currently stuck in the $60k-$70k range, and honestly, that’s a very important level. If you recall, that zone was a heavy resistance during the 2021 cycle, and now it’s a battleground between long-term buyers and those looking to cut losses. Data from CryptoQuant shows selling pressure on altcoins is at its highest level since 2021, indicating holders are actively distributing their assets.

Altcoins like Solana and XRP are hit harder than Bitcoin. That’s because they have higher volatility, so during risk-off periods, investors immediately consolidate into larger assets. The bearish pennant pattern forming on Bitcoin’s chart also indicates the potential for further decline if it breaks below $65k.

One interesting thing is how the correlation between crypto and tech stocks is becoming tighter. When big companies like IBM or payment processors fall due to AI scare, that contagion quickly spreads to crypto. The market is basically waiting for a catalyst—either macro stabilization or specific crypto developments—to break out of this deadlock.

Some analysts say that whenever Bitcoin’s price hits the 2021 levels, it’s a sign that investors are redoing price discovery. Currently, Bitcoin is about 48% below last year’s peak, and the longer the market remains stuck in this range, the more the technical outlook leans bearish. But for sure, momentum can change quickly if there’s a positive trigger.