Bitcoin’s prolonged downturn is entering a more fragile phase as long-term holders begin to show visible signs of stress, adding new pressure to an already weakened market structure.

Bitcoin is now trading in a historically important price zone - one that has often acted as either a launchpad for recovery or the start of deeper capitulation.

Bitcoin’s violent price swings continued this week, with the asset once again slipping below the $70,000 level after failing to sustain a rebound from recent lows.

Bitcoin’s violent slide toward the $60,000 level has reignited fears of a deeper bear phase, but fresh on-chain data and technical analysis suggest the market may be approaching a critical inflection point rather than the start of a prolonged collapse.

Bitcoin briefly dropped below the $70,000 mark, extending a sharp downside move that has defined the past several sessions.

Bitcoin extended its sell-off on Wednesday as heavy liquidations swept through the derivatives market, pushing prices sharply lower and deepening already fragile sentiment across the crypto sector.

Bitcoin is trading a little above $78,000, down roughly 11% over the past week, as fear-driven narratives dominate crypto markets.