Market sentiment has clearly weakened after Bitcoin recently broke through a key support level. In the past 24 hours, the total liquidation volume in the crypto market rose to $1.84 billion, of which approximately $884 million was related to Bitcoin, indicating that there were still a significant number of leveraged long positions in the market previously.

Margin calls amplify downward pressure

Once the support level is breached, leveraged long positions are more likely to be forced to liquidate, further amplifying the decline. The article mentions that the market is currently entering a sensitive phase.

If buying pressure can hold the $65,000 to $66,000 range, Bitcoin may experience a technical rebound. However, if selling pressure continues to dominate, volatility is likely to remain high, and the market will need to wait for a clearer recovery in demand.

Panic is rising again.

As selling pressure intensified, market expectations for the future turned significantly bearish. Some traders began betting that Bitcoin would fall below $60,000, or even further to $50,000.

However, extreme pessimism can sometimes be seen as a contrarian signal. Historically, when bearish sentiment is concentrated, it often corresponds to a mass sell-off by retail investors, rather than necessarily indicating the start of a new long-term downtrend.

Divergence between whale selling and retail buying

On-chain holdings changes show that large addresses still dominate short-term direction. Over the past week, the price of Bitcoin has fallen by approximately 13%, and wallets holding between 10 and 10,000 BTC have collectively reduced their holdings by 24,602 BTC.

In contrast, smaller addresses holding less than 0.01 BTC increased their holdings by 61 BTC during the same period, indicating that retail investors are still buying on dips. Only if selling pressure from larger addresses weakens will the downward pressure on the market gradually ease.