Bears Tighten Grip as Bitcoin Cracks Key Support

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Bitcoin (BTC) extended its selloff on June 2, falling below $70,000 and briefly touching the $69,000 area as bearish sentiment intensified across the market. Several onchain and market analysts now argue that BTC has lost a critical support zone, and ETF outflows and weakening momentum continue to pressure prices. The general crypto market also turned red, though a handful of assets such as Zcash (ZEC) and Toncoin (TON) managed to outperform.

Bitcoin Loses Cost Basis Zone as Breakdown Signals Flash

As it happens, crypto market insights platform Swissblock warned that Bitcoin is now “on the edge of a breakdown” after losing what it calls the Cost Basis Zone, a key area between about $72,000 and $79,000 where many recent buyers acquired their coins.

According to the firm’s chart, Bitcoin spent weeks consolidating within that range before failing to reclaim it. Analysts said the move shifted the market structure from a consolidation phase into a breakdown scenario.

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The latest market data on June 2 appears to support that view. Bitcoin traded around $69,400 at the time of writing after falling more than 4% over the past 24 hours. The decline pushed the asset well below the lower boundary of the Cost Basis Zone and near levels not seen since early April.

Other onchain indicators also weakened. Glassnode reported that spot sellers remain in control as Bitcoin ETF outflows accelerated to approximately $1.27 billion over the past week. The firm’s realized profit and loss indicator has fallen into negative territory, suggesting market participants are increasingly realizing losses rather than profits.

Meanwhile, Bitcoin Capital noted that BTC’s recovery attempt stalled precisely at the short-term holder cost basis before rolling over again. According to its analysis, SOPR has dropped below breakeven whereas MVRV continues to retreat, reinforcing the view that the recent bounce failed to restore bullish momentum.

ETF Outflows and Weak Momentum Weigh on Crypto Market

The bearish outlook extends beyond a single indicator.

Funding rates remain positive but have started showing signs of weakness, while momentum readings have slipped toward oversold levels. Short-term holder data also shows Bitcoin trading below the average cost basis of recent buyers, historically an area associated with increased selling pressure.

Market commentator Sykodelic highlighted another unusual development, arguing that Bitcoin’s weakness relative to broader macro assets has reached an extreme. He pointed to the growing divergence between Bitcoin and the software-focused IGV ETF, which had historically moved in a similar direction before recently decoupling.

The wider crypto market reflected the cautious mood. Bitcoin led losses among major assets, while XRP, BNB, Solana (SOL), Cardano (ADA), and Dogecoin (DOGE) all traded lower. A few exceptions stood out, however. Zcash gained more than 5%, Toncoin rose roughly 5.7%, and several smaller-cap assets posted double-digit advances despite the wider selloff.

For now, analysts appear focused on whether Bitcoin can reclaim the $72,000 area. Until that happens, many view the current move as a confirmed breakdown rather than a temporary pullback.