Bitcoin is currently experiencing its longest losing streak since 2022, with its price hovering near $66,931 as of Wednesday. This downturn comes amid rising geopolitical tensions that are exerting pressure on risk assets. A stronger U.S. dollar and increasing crude oil prices have further strained the cryptocurrency market, impacting Bitcoin price action significantly this week.
As risk assets falter due to escalating global tensions, there has been a noticeable capital rotation into defensive assets. This shift has amplified the downside pressure on Bitcoin, although structural demand from long-term holders has begun to resurface as the price approaches lower ranges.
The market”s reaction indicates a fragile support structure. Analyst Ted Pillows noted on X that Bitcoin slipped below $67,000, testing the critical $65,000–$66,000 zone. He cautioned that losing this support could break the higher low structure and expose liquidity around $60,000. This warning follows sustained selling pressure across spot markets.
According to Coin Bureau, long-term holders stopped distributing Bitcoin after January 12, 2026, when prices fluctuated between $62,000 and $68,000. These holders had been distributing for six months at higher levels before reversing their strategy, coinciding with intensified price compression and a slowdown in downside momentum.
Open interest data indicates renewed positioning, with aggregated futures open interest increasing 3% to $15.50 billion from $15.10 billion over two days, despite a lower spot price. Additionally, funding rates have risen to 0.046%, suggesting that traders are opening new long positions in a weak market. Notably, since February 15, approximately $250 million in long positions have been liquidated below $67,000, reflecting a pattern of market flushes that often precede stabilization attempts.
On-chain data presents a mixed picture regarding long-term holder activity. CryptoQuant”s Coin Days Destroyed (CDD) heatmap shows that long-term holder activity has reached cycle highs. Elevated CDD readings usually align with distribution near market tops, but this cycle”s structure is different. Major entities like Coinbase and Fidelity have conducted substantial unspent transaction outputs (UTXO) consolidation transactions, inflating the CDD readings without necessarily indicating aggressive selling. Moreover, the migration towards SegWit and Taproot formats has contributed to heightened activity levels, expanding institutional liquidity during this time.
Despite these mixed signals, Coin Bureau observed a renewed accumulation trend as prices compressed into lower bands, indicating selective re-entry by long-term holders. On the one-hour chart, Bitcoin has formed a descending channel, reminiscent of last week”s pattern that preceded a rebound. A bullish divergence on the relative strength index has emerged, as the price has printed lower lows while momentum has shown higher lows, suggesting a decrease in selling pressure.
Analysts believe that a sustained break above $68,000 could pave the way to liquidity at $71,500. Conversely, failure to maintain support below $66,000 may prompt a shift in focus toward higher-time-frame support levels between $62,000 and $60,000.
In terms of futures momentum, Binance Bitcoin futures power 30-day change has dropped to -0.18, a level last observed between April and May 2024. Historically, similar negative readings have preceded rallies, driving Bitcoin”s price above $100,000 once momentum shifted positively. Analysis of spot order books reveals thin liquidity between $66,000 and $69,000, with current positioning described as neutral as compression builds ahead of potential expansion.
Liquidity heatmaps also indicate dense clusters below $66,000 and above $71,000, marking areas of concentrated resting orders and stop positions. Such market conditions tend to trigger volatility when price levels are tapped. Furthermore, BitBull has suggested that Bitcoin may face one final downturn, echoing patterns seen in the fourth quarter of 2025 and early February 2026, potentially leading to a longer-term accumulation opportunity.
At this juncture, Bitcoin is at a technical crossroads, with a decisive move beyond upper liquidity possibly confirming momentum. Conversely, breaking below internal support could trigger stop losses and push the price toward lower ranges. Traders are keenly observing the $65,000 threshold for signs of the next significant market impulse.
