Bitcoin (BTC) Price News: BTC Drops to 21-Month Low as Extreme Fear Grips the Market

The BTC price has returned to levels which many traders have not seen in close to two years now. The bitcoin price dipped below the $59,000 mark following a wave of liquidations that took place in the crypto space, resulting in billions of dollars worth of leveraged positions being lost.

That has reopened a familiar debate. Is this the start of another deeper decline, or is Bitcoin revisiting the same area that marked previous cycle bottoms?

The BTC Price Is Back Near a Familiar Support Zone

We had a look at the long-term logarithmic Bitcoin chart shared by Rand Group, and one detail stands out immediately. Bitcoin is back at the rising support trendline which has existed since 2011. The chart below represents the history of Bitcoin for the last 15 years in cycles. 

The cryptocurrency went up from below $10 to above $1,000 in 2013, before falling to nearly $200 in 2015. Later on, Bitcoin rallied to nearly $20,000 in 2017, fell to about $3,000 in 2018, and rose above $60,000 until falling to nearly $15,000 in the bearish 2022.

Each one of those falls was over 75% and yet each bear market led to an even higher peak. That is why many long-term investors continue watching this support trendline. It has acted as a floor through multiple market cycles, even though every visit came with widespread fear and predictions that Bitcoin’s best days were over.

The chart itself is based on Bitcoin’s long-term logarithmic growth and does not predict future prices. It simply shows where the BTC price has repeatedly found support during previous market downturns.

Read Also: Claude AI Predicts the Bitcoin Price Before the End of June

Liquidations Hit the Crypto Market Hard

The recent decline did not solely arise due to technical selling. According to Coin Bureau, the price of BTC declined to about $58,000, representing its lowest level since September 2024.

At the same 24-hour period, crypto liquidations crossed the $1.09 billion threshold, where long traders represented about $778 million worth of losses. Market data from June 25 revealed that Bitcoin touched its intraday low at about $58,887 amid a quick 25-minute selloff where about $48 billion were stripped away from Bitcoin’s market cap.

This came after the publication of the U.S. Personal Consumption Expenditures (PCE) data which revealed that the inflation rate increased to 4.1% year on year in May. This added expectations of interest rates remaining high for an extended period, limiting liquidity for higher risk assets like cryptocurrencies.

With declining prices, leveraged trades started getting closed automatically and pushing prices lower throughout the crypto market. Liquidations on the day rose to about $1.48 billion where more than $1.2 billion was liquidated from long trades.

Fear Has Returned to the Bitcoin Market

Investor sentiment has weakened almost as quickly as the price. According to the Crypto Fear and Greed Index, the market entered the state of “Extreme Fear” on June 25 when it reached the value of only 12.

Extreme Fear can be found in the proximity of key lows on the charts in past cycles, but this doesn’t mean that the BTC price touched its bottom at that moment. It just shows that many people became afraid due to the market drop recently.

In addition, the Coinbase Premium Index stayed negative, which means that there is little institutional demand during the sell-off. Due to the lack of buying pressure from institutions, Bitcoin became highly susceptible to sharp price fluctuations as soon as leveraged positions started getting closed.

Where Could the BTC Price Go Next?

The BTC price is now caught between two competing views. The bearish side points to stubborn inflation, tighter monetary policy, weaker institutional demand, and billions of dollars in forced liquidations.

The bullish side looks at Bitcoin’s history. Every major bear market has eventually returned to the same long-term support area before beginning a new cycle higher. That pattern appeared in 2015, 2018, and 2022.

The next move will depend on whether buyers can defend the area around $58,000 and begin rebuilding confidence. If that happens, the conversation may once again turn toward another recovery. If selling pressure continues, the market could remain volatile until stronger support begins to emerge.

FAQs

Is Bitcoin still considered a long-term investment

Many investors view Bitcoin as a long-term asset because it has recovered from multiple bear markets in the past. However, it remains a volatile investment and future performance is never guaranteed.

Can the BTC price recover after this decline

A recovery depends on whether buyers step in around current support levels and broader market conditions improve. Traders are also watching inflation data, Federal Reserve policy, and institutional demand.