Bitcoin Pullback Deepens as Millions of Wallets Turn Unprofitable
Bitcoin trades below $72,000 after failing to hold recent highs, as weakening momentum and rising liquidations signaled a cooling market.
Summary:
- Bitcoin has fallen back toward $71,000 as momentum weakens after a failed push higher.
- More than 13 million Bitcoin addresses are now underwater, signaling growing pressure on holders.
- Liquidations have surged past $160 million in 24 hours, highlighting fragile positioning.
The largest digital asset was trading near $71,050 after briefly attempting to reclaim higher resistance levels above $73,000. The move marks a shift in short-term structure, with price now consolidating below key technical thresholds, including its 50-period simple moving average on lower timeframes.
Technical Breakdown Signals Cooling Momentum
Price action over the past 48 hours reflects a clear rejection from local highs near $74,000. After several days of range-bound consolidation, Bitcoin lost upward momentum and rotated lower, triggering a cascade of short-term selling.
Momentum indicators reinforce that shift. The relative strength index (RSI) has dropped into the low 40s, hovering around 42, suggesting weakening buying pressure without yet reaching deeply oversold conditions. Meanwhile, the moving average convergence divergence (MACD) remains in negative territory, though early signs of flattening hint at a potential stabilization phase.
The broader structure suggests a market caught between exhaustion and support, rather than one in outright capitulation.
On-Chain Pressure Builds as Holders Turn Red
Beyond price action, on-chain data points to increasing stress among market participants.
Recent estimates show that more than 13 million Bitcoin addresses are currently holding at a loss, a sharp rise compared with levels seen during the March recovery phase. Historically, spikes in underwater supply tend to coincide with periods of heightened volatility, as weaker hands become more sensitive to price swings.
This shift reflects the speed of the recent correction. A significant portion of buyers who entered during the $70,000–$74,000 range are now marginally underwater, creating a layer of potential sell pressure on any further downside.
At the same time, the absence of panic-driven spikes suggests that long-term holders remain largely inactive, reinforcing the idea that current selling is concentrated among shorter-term participants.
Liquidations Highlight Fragile Market Structure
According to data from Coinglass, for the past 24 hours shows total liquidations reaching approximately $163 million, with long positions accounting for the majority of forced closures. Bitcoin and Ethereum led the liquidation flows, with roughly $35 million and $32 million respectively wiped out during the period.
READ MORE: Charles Schwab’s Bitcoin Push Signals Turning Point for Retail Crypto Access
The imbalance between long and short liquidations suggests that traders were positioned for continued upside following Bitcoin’s earlier breakout attempts. As prices reversed, those leveraged positions were quickly unwound, accelerating the downside move.
Short liquidations, while present, remain comparatively smaller, indicating that bearish positioning has not yet reached crowded levels.
Market Cap Decline Reflects Broader Weakness
The pullback in Bitcoin has translated into a modest decline across the wider digital asset market.
Total crypto market capitalization has slipped to around $2.42 trillion, down roughly 0.5% on the day. While the move is not dramatic in isolation, it underscores a broader pattern of fading momentum following recent gains.
Large-cap assets have mirrored Bitcoin’s trajectory, with price action showing synchronized weakness rather than isolated declines. This correlation highlights Bitcoin’s continued role as the primary driver of market direction, particularly during periods of uncertainty.
A Market Searching for Direction
Taken together, the data points to a market in transition.
Bitcoin’s inability to sustain a move above $73,000 has shifted near-term sentiment from bullish continuation to cautious consolidation. At the same time, rising unrealized losses and elevated liquidation activity suggest that leverage remains a key vulnerability.
Yet the absence of extreme panic signals leaves open the possibility of stabilization rather than deeper correction.
For now, the market appears to be recalibrating. Traders are watching whether support near the $70,000 – $71,000 range can hold, or if continued pressure from derivatives and underwater supply will push prices lower.
The next decisive move is likely to depend less on technical levels alone and more on whether buyers are willing to re-engage in a market that has, at least temporarily, lost its upward momentum.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Zdravkov
Reporter at CoinsPress
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
