Key Insights:
- Bitcoin Price approached longest losing streak since 2022.
- Long-term holders shifted from distribution to accumulation.
- Futures positioning showed rising leverage near support.
Bitcoin price hovered near $66,931 on Wednesday as geopolitical tensions pressured risk assets. Coin Bureau reported that the asset neared its longest losing streak since 2022. A stronger U.S. dollar and rising crude oil added strain across crypto markets.
The broader backdrop shaped Bitcoin price action this week. Risk assets weakened amid escalating global tensions, prompting capital rotation into defensive assets. This environment amplified downside pressure, even as structural demand from long-term holders resurfaced near lower ranges.
Bitcoin Price Market Reaction Showed Fragile Support Structure
Ted Pillows wrote on X that Bitcoin price slipped below $67,000 and tested the $65,000–$66,000 zone. He warned that losing this region would break the higher low structure and expose $60,000 liquidity. That warning followed sustained selling pressure across spot markets.
Coin Bureau later stated that long-term holders stopped distributing after Jan. 12, 2026, once Bitcoin traded between $62K–$68K. They had spent six months distributing at higher levels before reversing behavior. That shift occurred as price compression intensified and downside momentum slowed.
Open interest data reflected renewed positioning. Aggregated futures open interest climbed 3% to $15.50 billion from $15.10 billion within two days, even as spot drifted lower. Funding rates ticked higher to 0.046%, suggesting traders opened fresh long exposure into weakness.
Long liquidations also reset leverage. Since Feb. 15, roughly $250 million in long positions closed below $67,000. That reaction mirrored prior flushes that cleared crowded positioning before stabilization attempts.
On-Chain Data Signals Mixed Long-Term Holder Activity
CryptoQuant’s Coin Days Destroyed heatmap showed long-term holder activity reached cycle highs. CDD measures accumulated holding days spent when unspent transaction outputs move. Elevated readings typically align with distribution near market tops.
This cycle differed in structure. Major entities such as Coinbase and Fidelity conducted large UTXO consolidation transactions, which inflated readings without necessarily signaling aggressive selling. Migration toward SegWit and Taproot formats also contributed to higher activity levels.
Institutional liquidity expanded during this period. That development allowed long-term holders to distribute larger volumes compared to prior cycles. However, Coin Bureau later observed renewed accumulation behavior once prices compressed into lower bands, suggesting selective re-entry.
On the one-hour timeframe, Bitcoin price formed a descending channel similar to last week’s pattern that preceded a rebound. A bullish divergence developed on the relative strength index as price printed lower lows while momentum printed higher lows.
That divergence indicated fading selling pressure. Analysts noted that a sustained break above $68,000 could open the path toward liquidity at $71,500. Conversely, failure to defend internal liquidity beneath $66,000 would shift focus toward higher-time-frame support between $62,000 and $60,000.
Bitcoin Price Futures Momentum And Liquidity Clusters Define Setup
Amr Taha reported that Binance Bitcoin futures power 30-day change dropped to -0.18, a level last seen between April and May 2024. Similar negative readings in that period preceded a rally that later pushed Bitcoin above $100,000 once momentum flipped positive.
Dom analyzed spot order books and described thin liquidity between $66,000 and $69,000. He characterized current positioning as neutral, with compression building ahead of expansion. That structure suggested that stop clusters could drive the next directional move.
Daan Crypto Trades shared liquidity heatmaps showing dense clusters below $66,000 and above $71,000. These zones marked areas where resting orders and stop positions concentrated. Such conditions often trigger volatility once price taps those pockets.
BitBull added that Bitcoin likely faced one final dump similar to patterns seen in Q4 2025 and early February 2026. He argued that such a move could create a longer-term accumulation opportunity. While speculative, this view aligned with elevated derivatives positioning and on-chain churn.
Bitcoin price now sits at a technical crossroads. A decisive move beyond upper liquidity may confirm momentum, while a breakdown below internal support risks triggering stops toward the lower range. Traders will watch the $65,000 threshold for confirmation of the next impulse.