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Home»Opinion»Bitcoin Could Face New Wave of Selling if Key Support Level Breaks
Bitcoin Momentum Signal Nears Threshold That Preceded October's $370B Crash
A critical Bitcoin momentum signal is nearing the 0.5 threshold, a level that preceded the major October 2025 crash and February 2026 sell-off. Analysis here.
Opinion

Bitcoin Could Face New Wave of Selling if Key Support Level Breaks

Diego AlmeidaBy Diego AlmeidaJune 7, 2026No Comments3 Mins Read
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Bitcoin has come under renewed pressure in recent days, following the broader risk-off sentiment that has affected multiple segments of the financial markets. Although the world’s largest cryptocurrency continues to trade above levels considered strategically important by analysts, several indicators suggest the market may be entering a more fragile phase.

Recent data shows that selling pressure has increased during the current correction, a pattern that differs from what has been observed in several previous market cycles. During deeper declines, selling activity typically slows as prices approach levels considered attractive by long-term investors. This time, however, the supply of coins entering the market remains elevated.

According to analysis shared by CryptoQuant experts, investors have realized billions of dollars in losses over the past few days, reflecting increased selling activity amid falling prices.

$54,000 Support Level Enters the Spotlight

One of the most closely watched levels among analysts right now is the area around $54,000.

This level is considered significant because it is close to Bitcoin’s realized price, a metric used to estimate the average acquisition cost of bitcoins currently in circulation. Historically, this region has often served as a key support zone during deeper market corrections.

Another concerning factor is that Bitcoin has fallen below the average purchase price of many short-term holders. When this happens, the number of investors holding unrealized losses increases, which can add further selling pressure if market sentiment deteriorates.

If the $54,000 support level fails, some analysts believe the market could move toward even lower levels.

Among the areas being monitored is the region near $49,000, which is associated with the average cost basis of long-term Bitcoin holders.

Despite the more cautious outlook, market experts note that there are still no clear signs of widespread capitulation across the market.

Institutional Investors Remain a Key Factor

While the correction has increased volatility, institutional investor behavior continues to be one of the most important factors to watch in the coming weeks.

Since the approval of spot Bitcoin ETFs in the United States, institutional capital has played an increasingly significant role in price formation. Positive inflows into these products have helped support the market on several occasions throughout the past year.

At the same time, macroeconomic conditions continue to influence investor sentiment.

Expectations surrounding interest rates, inflation, and economic growth remain important drivers for risk assets, including cryptocurrencies.

If Bitcoin manages to hold its major support levels, some market participants believe selling pressure could gradually ease. On the other hand, a decisive breakdown below these regions could trigger a new wave of liquidations and increase short-term volatility.

Regardless of Bitcoin’s immediate price direction, the battle between buyers and sellers over the coming days may prove decisive in determining the cryptocurrency’s trajectory for the remainder of 2026. For now, the $54,000 and $49,000 support levels remain among the most closely watched zones for traders and market analysts.

Bitcoin bitcoin price crypto market analysis cryptoquant On-Chain Analytics
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Diego Almeida

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