Bitcoin Drops to Four-Month Low Near $61,500

Bitcoin fell to about $61,500 in early Asian trading, marking its lowest level since early February. The move erased more than $1 billion in leveraged positions within 24 hours and extended a month-long decline that removed roughly 20% from the cryptocurrency’s price.

Market data show continued outflows from spot exchange-traded funds have reduced a channel of institutional demand. Overall demand for Bitcoin, combining speculative and spot flows, is contracting at an approximate monthly rate of 232,000 coins, a pace traders say has increased selling pressure.

Compass Point analyst Ed Engel flagged a change in holder activity. Long-term holders who were largely inactive between February and April have sold about $2.4 billion in Bitcoin, Engel noted. He added that addresses that bought above $90,000 accounted for roughly 26% of the coins sold over the past 30 days, a pattern Engel described as “top-buyer capitulation.” Engel said this pattern commonly appears late in bear markets.

Technical indicators have also drawn attention. Scott Melker, host of The Wolf Of All Streets, pointed to an oversold reading on Bitcoin’s weekly relative strength index, a condition that appeared near prior cycle lows in 2015, 2018 and 2022. Melker wrote, “Bottoms are processes, not events,” and cautioned that an oversold RSI does not identify the exact bottom. He noted a timing element: previous major lows occurred roughly 777, 889 and 924 days after their respective halving events, and Bitcoin is now about 770 days past the April 2024 halving.

Joao Wedson, chief executive of Alphractal, offered a longer-term view, suggesting the asset could gain momentum from 2027 and that a multi-year rally might follow historical pattern magnitudes.

The immediate weakness forced liquidations across leveraged positions and removed some institutional demand. Market participants say whether the price stabilizes or continues lower should become clearer in the coming sessions.

Halving events, which cut miner rewards roughly every four years, reduce the rate at which new Bitcoin enters circulation. Observers are monitoring holder flows, ETF activity and technical indicators for converging signals that market participants may use to assess the end of the current downturn and the start of any recovery process.