Bitcoin (BTC), price dropped to $76,500 on MondayAs tensions over the US-Iran conflict grew, it sullied sentiment on the cryptocurrency market. Investors and traders have been forced to reconsider their risk and remain cautious. Many recent BTC buyers sold their BTC for a loss.
The key takeaways
Bitcoin short-term investors sold approximately $770 million worth of BTC at a loss Monday.
Analysts are in agreement that bringing Bitcoin’s value below $76,000 would trigger a new downtrend towards $65,000 to $70,000.
Bitcoin’s “weak hands” realizing losses
Bitcoin is down 7% since its peak. local high of $82,800 Set on 6th May. Set on May 6, rejection from the 200-day moving averages at $82,000The daily closing below the true mean of the market, as well as the cost-basis for short-term holders at around $78,000, have led to a risk-off attitude among Bitcoin investors.
Onchain data from CryptoQuant showed that more than 10,000 BTC were transferred by short-term holders — investors who have held the asset for less than 155 days — to Binance at a loss on Monday.
Bitcoin was trading at $76,900 – 2% less than the average price they paid of $78,440. Recent buyers may have sent Binance $769 Million in BTC, at a significant loss.
You can also find out more about this by clicking here. “reflects short-term holder stress, forced selling, or capitulation from weaker hands during a correction,” Amr Tah is a CryptoQuant analyst said On Tuesday, I posted a QuickTake.
Binance: STH transfers volume at a loss. Source: CryptoQuant
It is not unusual for short-term traders to panic-sell during market declines and suffer losses.
In mid-November of 2025, a similar event preceded the 15% decline in BTC prices to $78,400 in just five days from $96,000.
Glassnode provides additional data shows There is more to it “7.8M BTC are currently held at a loss,” Overhang of supply that market participants would have to deal with “absorb before any sustained move higher becomes structurally credible.”
BTC Total Supply in Loss Source: Glassnode
Bitcoin’s decline is not the only factor that has contributed to its slump. heavy outflows The US spot Bitcoin Exchange-Traded Funds (ETFs) have seen negative flow for the past six days.
The net withdrawals from these investment products on Monday totaled $648,6 millions. This is the highest amount since January 29.
Global Bitcoin Investment Products recorded $981.5 million in net outflows The week ended May 15 and showed a declining appetite among institutions for BTC.
“Markets are getting absolutely hammered,” Alek_Carter, an analyst said The post, which was published by X on Tuesday, mentioned the massive outflows in Bitcoin investment products.
“Money is rotating out fast, panic is creeping in, and traders are clearly hitting the risk-off button hard.”
Cointelegraph reportedBitcoin is falling to new record lows due to the aggressive sales in futures markets, as well as a weakening of spot demand.
What is the lowest price Bitcoin can go?
Bitcoin could reach a bottom between $65,500 to $75,000 if the market continues its current weakness.
Historically, the peaks in activity by long-term holders and declines in short-term trading have been associated with significant market bottoms just before recovery.
This chart shows that the long-term holders are stronger (the bands in blue/purple have become thicker). “reflecting growing institutional adoption,” CryptoQuant analyst Sunny Mom said Quicktake Tuesday.
The supply chain is stronger than ever before. “which changes how BTC forms its bottom,” “The analyst stated, adding”
“Our predicted price range for this cycle’s bottom is $65.9K–$70.5K. If $70.5K holds, we’ll slowly grind out a bottom in the upper range.”
Bitcoin HODL indicator. Source: CryptoQuant
Bitcoin’s fifth consecutive red daily candle suggests the currency is in trouble. “momentum is starting to shift back to the bears,” analyst Alex Marzell said On Monday, in a blog post at X.com:
“Bitcoin may come back to retest the breakout zone around $70K support.”
Echoing You can also find out more about this by clicking here. sentiment, MN Capital founder Michael van de Poppe said this “doesn’t look great” Bitcoin must hold support between $74,500 and $76,000. “in order to get back some momentum in the markets.”
If this area does not hold, we are most likely to cascade through the lows from the recent rally.
BTC/USD Daily Chart Source: X/Michael van de Poppe
Cointelegraph reportedIf the BTC/USDT price pair drops below $76,000, the BTC/USDT could fall to $65,000. In the short-term.
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