Analyst: Bitcoin falls below key support level, touching $70k, with multiple signals warning of a deep correction risk

After breaking through the critical cost basis area, Bitcoin's price has reached the $70k mark, with several on-chain analysis firms and industry analysts issuing warnings, indicating the possibility of further deep corrections.

Swissblock, an on-chain analysis company, recently reported that Bitcoin is on the "edge of collapse." Losing the crucial cost basis range of $72,000-$79,000 directly triggered this round of definitive decline, which represents the average purchase cost of short-term holders and is a key support and resistance indicator.

Previously, during the consolidation within this range, effective support had not yet formed, and the price recovery momentum was insufficient. The market structure has shifted toward downward risk dominance. Swissblock emphasized that only a strong return to this cost basis range can restart the bull market.

On the same day, Glassnode also issued a warning that BTC is facing increasing downward pressure. Currently, the spot market is dominated by sellers, with Bitcoin ETF fund outflows accelerating to $1.3 billion, while new inflows have stalled. The market structure has weakened, and short-term downward momentum is prevailing.

Bitcoin ETP provider Bitcoin Capital also believes that after a short-term rebound at the cost basis level, BTC's price was blocked and fell back. Additionally, several key on-chain indicators have failed at the current price level, indicating that the market is showing signs of "controlled decline and failed recovery."

Meanwhile, the traditionally bullish analyst Sykodelic pointed out that Bitcoin's current weakness has reached a historical peak, becoming the only unexpanded macro asset, and has decoupled from other assets for the first time, moving into a downtrend independent of traditional financial market laws.

From a market perspective, Bitcoin has now fallen below the $70k threshold. Some analysts suggest that this decline is likely to return to early April levels, with the risk of further downward movement toward the $65,000 bottom zone significantly increasing.

Moreover, US SEC documents show that Michael Saylor's Strategy sold a total of 32 Bitcoins in the last week of May, realizing a profit of about $2.5 million. This major institution’s reduction in holdings has also intensified bearish market expectations.

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