Daily BTC losses trigger cross-crypto selloff; analysts cite bear flag breakdown
Bitcoin fell below $67,000 for the first time since April 5, erasing months of gains and triggering $1.25 billion in 24-hour liquidations across crypto markets on June 2. The 6% daily price decline pushed BTC/USD to a low of $66,948 on Bitstamp, signaling renewed downside pressure after a period of relative stability.
The selloff diverged sharply from broader equity markets. The S&P 500 set another all-time high on the same day, underscoring a breakdown in the correlation between Bitcoin and traditional risk assets. Rekt Capital, a trader and analyst, attributed the divergence to macro positioning: “Investors are Macro Risk-Off, fleeing into Stablecoins and moving away from Bitcoin.”
Technical analysts identified a bear flag breakdown pattern as the driver of the decline. Rekt Capital pointed to a 50-month exponential moving average at $66,250 as a critical support level. “There could be a limited reaction from there on contact but over time Bitcoin is likely to breakdown from this EMA and continue macro downside in this Bear Market,” Rekt Capital said.
CollinTalksCrypto, a social media channel creator, dismissed speculation that current market conditions differed from prior bear cycles. “Many wanted to overcomplicate this with ‘this time is different,’ but bitcoin is just doing the same thing it always does in bear markets. It breaks down,” CollinTalksCrypto wrote.
Exitpump, a market commentator, cited record open interest as a structural factor amplifying spot selling pressure. The analyst projected a sharp capitulation move: “I think this can end with a big red candle wiping out all the underwater longs from the system. Maybe we hit low 60Ks or even mid 50Ks.”
Kalshi, a prediction service, published price targets in the $50,000 range, reflecting analyst expectations for further downside. The previous bear market, which lasted approximately 4 months, saw Bitcoin decline to around $60,000 as a low point between October and February.
The liquidation cascade across leveraged positions underscores the fragility of long positioning after months of recovery from earlier 2026 lows. No immediate bounce catalyst has emerged, and technical analysts remain bearish on near-term prospects absent a reversal in macro risk sentiment.
