Bitcoin falls under $68,000 with traders betting move to low-$60,000s

Market Overview - Bitcoin has fallen below the $68,000 level, continuing a week-long selloff that reflects weakness in global risk assets and raises concerns about potential further declines [1] - Over the past 24 hours, crypto liquidations exceeded $1 billion, resulting in approximately $980 million in bullish leveraged positions being wiped out as traders were forced to close positions [1] Technical Analysis - The price of Bitcoin fell below $70,000, with liquidity heatmaps indicating a risk of further downside [1] - According to Coinglass data, the $70,000 level is considered mechanically important, as a clean break below it could lead to a rapid decline towards the high $60,000s due to reduced forced buying from liquidations [2] - A liquidation heatmap indicates that certain price levels are likely to act as short-term magnets for price movements, with crowded zones identified for potential volatility [3] Historical Context - The $60,000 zone has emerged as a potential entry point, with Bitcoin's 200-week moving average historically serving as a bottom signal in previous cycles, currently positioned around $57,926 [4] - Historical data suggests that $60,000 may represent a bottom for Bitcoin, as sentiment in prediction markets has shifted towards lower price levels, with traders now assigning higher probabilities to prices at or below $65,000 [5] Market Sentiment - Recent flows data indicates caution among market participants, with US-listed spot Bitcoin ETFs experiencing net outflows this week and reduced activity in perpetual futures as leverage decreases [6] - The $68,000 to $70,000 zone is viewed as a key technical area due to significant prior trading activity, and a sustained break below this range could lead to a deeper consolidation phase, reminiscent of previous post-rally drawdowns [6]