Bitcoin has yet to stabilize after eight consecutive weeks of decline, falling to around $66,989 on June 3, a drop of over 10% in the past week. On-chain data and sentiment indicators are weakening in tandem, and the market is beginning to view $65,000 as a key level to watch this month.
Whale selling continues
Santiment data shows that large cryptocurrency holding addresses have continued to reduce their positions recently. These accounts tend to amplify short-term volatility when market depth is weak. After Bitcoin fell below $70,000, traders' defensive sentiment intensified, and the market is more focused on whether the large-scale selling will slow down around $65,000.
In contrast, smaller wallets holding less than 0.01 BTC added a total of 61 Bitcoins in the past month, representing a growth of approximately 12%. However, this increase is still significantly less than the selling pressure from whales and large holders, and is not enough to change the overall trend in the short term.
Extreme panic re-emerges
Santiment believes that for a more robust rebound to materialize, the market may need to see two changes simultaneously: first, large investors shifting from selling to buying; and second, retail investors cooling their enthusiasm for buying on dips. Only after these two types of fund flows rebalance will the signals of a local bottom become clearer.
The report noted that the Fear & Greed Index has fallen to the extreme fear zone, indicating that traders have become significantly more cautious after this round of declines. Such readings typically appear during periods of increased passive selling, reduced leverage, and a decline in overall risk appetite.
$65,000 becomes the focus
As of the time of this report, the total market capitalization of the cryptocurrency market was approximately $2.40 trillion, with a daily trading volume of approximately $143.61 billion. The high trading volume indicates continued market activity, but price performance remains weak. Ethereum fell to approximately $1,872.40 during the same period, a daily drop of over 5%, while Bitcoin's market share was approximately 55.93%.
From a price structure perspective, Bitcoin has retreated after being repeatedly resisted in the $70,000 to $75,000 range, and is currently still trading below multiple short- and medium-term moving averages, indicating that sellers remain in control. CryptoQuant's HODL Waves analysis considers the area around $65,000 as a potential local bottom range, and the current price has entered the upper limit of this range.
If the daily chart breaks below existing support, market attention may shift to the $60,000 level and surrounding liquidity areas. Meanwhile, analyst Trader Tardigrade points out that Bitcoin's daily RSI has re-entered oversold territory, a level that has historically correlated with strong rebounds.
He also mentioned that the RSI lows are rising along the upward trend line, and Bitcoin's price is showing a similar structure. If this pattern continues, the latest oversold reading could provide conditions for a price rebound. However, based on current data, whether the selling pressure from whales has eased remains a more direct variable for short-term price movements.
