Bitcoin is facing renewed selling pressure after losing a major long-term technical level, while more than $1.15 billion in leveraged crypto positions were liquidated within 24 hours.
The latest decline has raised concerns about market structure, particularly as leveraged traders continue to face significant losses.
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Bitcoin closed the weekly candle below its 50-week moving average for the first time in eight weeks.
- 50-week moving average: approximately $75,488
- Weekly closing price: approximately $74,851
- Distance below the average: approximately 0.7%
This level had previously acted as an important trend indicator. Losing it suggests that bullish momentum is weakening and sellers are gaining greater control.
However, one weekly close below the moving average does not automatically confirm a long-term bear market. Bitcoin's ability to reclaim this level will be important.
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The market downturn triggered a major liquidation event across cryptocurrency derivatives markets.
According to CoinGlass data reported by The Block:
- Total liquidations: $1.15 billion
- Long liquidations: $1.04 billion
- Short liquidations: $117 million
- Traders liquidated: approximately 167,764
Long positions accounted for the overwhelming majority of forced closures.
Ethereum traders experienced more than $500 million in liquidations, while Bitcoin accounted for approximately $309 million.
The largest individual liquidation was a $48.2 million ETH-USDT long position on Binance.
These figures highlight how excessive leverage can accelerate market declines when prices move against crowded positions.
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Institutional investment flows are another important factor.
U.S. spot Bitcoin ETFs recorded approximately $1.28 billion in net outflows during the previous week, marking their largest weekly outflow since late June.
The funds experienced outflows on four of the five trading days, while total net outflows for 2026 reached approximately $914.1 million.
BlackRock's IBIT alone recorded around $403 million in outflows on Friday.
This suggests that institutional demand has weakened alongside the broader market correction.
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Bitcoin's next moves will depend heavily on whether buyers can defend nearby support and reclaim lost resistance.
Resistance levels:
- $75,488 – 50-week moving average
- $76,000 – Short-term recovery area
- $80,000 – Major psychological resistance
Support levels:
- $74,000 – Immediate psychological support
- $73,000 – Important downside reference
- $68,000 – Further downside level if selling pressure continues
A sustained recovery above the 50-week moving average could improve market sentiment. However, continued rejection below this level may increase the possibility of another downward move.
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The combination of weakening technical structure, substantial ETF outflows and heavy long liquidations presents a challenging environment for bullish traders.
However, the liquidation event could also reduce excessive leverage and create conditions for a more stable market if selling pressure begins to fade.
For now, traders should monitor weekly closing prices, trading volume, ETF flows and derivatives positioning rather than rushing into leveraged positions.
The key question is whether Bitcoin can reclaim its 50-week moving average or whether this breakdown develops into a deeper correction.
