Short Description:
Bitcoin hovers near $66,000 as renewed selling pressure stalls its recovery, with altcoins declining more sharply amid tightening global liquidity and risk-off sentiment.
Read Time: 2 minutes 15 seconds
Main Article
Bitcoin is trading around $66,000 after pulling back from a brief dip towards $60,000, entering a consolidation phase as selling pressure and a broader risk-off mood in global markets resurface. The leading cryptocurrency, alongside Ethereum, dropped about 2% in the last 24 hours. Major altcoins like XRP, BNB, Solana, and Cardano fared worse, shedding over 3% each. This pullback has dragged the total global cryptocurrency market capitalization down 1.3% to approximately $2.27 trillion, with overall market sentiment firmly in “extreme fear” territory, according to analysts.
The stall in Bitcoin’s rebound follows its failure to sustain momentum above the key $70,000 level, indicating that current rallies are being met with distribution by sellers rather than strong, conviction-based buying. Analysts point to strong U.S. PMI data reinforcing the “higher-for-longer” interest rate narrative, which keeps liquidity tight and weighs on risk assets. Akshat Siddhant, Lead Quant Analyst at Mudrex, notes that a sideways move between $60,000 and $70,000 is typical after a sharp price swing as the market digests liquidity and resets positions. The upcoming U.S. CPI data release is highlighted as a critical volatility catalyst that could provide the next significant directional trigger for Bitcoin prices.
Despite the short-term bearish technicals showing buyer exhaustion, some see a potentially constructive macro backdrop forming. However, on-chain data reveals that long-term holders continue to distribute their holdings, contributing to the downward pressure. Nischal Shetty of WazirX suggests the market is in a capitulation phase that historically can last months before a genuine trend reversal begins. This prolonged uncertainty could trickle down to dampen sentiment across the broader altcoin sector, keeping the cryptocurrency market in a cautious holding pattern until a clearer macro signal emerges.
Short Summary
Bitcoin’s recovery has stalled near $66,000 amid renewed selling and risk-off sentiment, dragging major altcoins down further. Analysts attribute the consolidation to strong economic data supporting tight liquidity and note that long-term holder distribution suggests a capitulation phase may be underway. The focus now shifts to upcoming U.S. inflation data as a potential catalyst for Bitcoin’s next significant price move, while the broader cryptocurrency market remains in a state of cautious fear.
