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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Amid intensifying selling pressure in the digital asset space, Bitcoin has plunged 22% from its peak recorded in May. Data reveals that more than $12 billion has exited the network, while investors have been locking in realized losses for 25 consecutive days. This sustained capital outflow underscores a deepening bearish sentiment, suggesting that the market has yet to find a definitive floor despite recent attempts at stabilization.
This sharp drawdown aligns with broader weakness across risk assets, compounded by macroeconomic headwinds such as the 3.8% contraction in German Factory Orders per market data. Compared to previous bear cycles in 2018 and 2022, the current lack of 'capitulation' volume despite heavy outflows suggests a prolonged recovery phase. Per market data, major peers like Ethereum also remain under pressure as global liquidity conditions tighten following recent central bank signals.
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Sign InLooking ahead, Bitcoin was trading near $66,450 (at close June 12, 2026) as markets await upcoming U.S. inflation figures. Traders should closely monitor established support levels to determine if the current 22% correction will deepen. Key catalysts in the coming days include the market's reaction to the ECB's Lagarde speech from June 9, 2026, which continues to influence global risk appetite.
Update: A potential technical reversal signal has emerged as Bitcoin's long-term 'Gauss Channel' flashed green. This indicator is historically significant, as it has previously coincided with the conclusion of major bear markets and the onset of new accumulation phases.
Update: Recent market action has validated this cautious outlook, as Bitcoin retreated sharply from its June high of $73,978 to test critical support at $59,073 on June 5, 2026. This 20% drawdown within a single week underscores the prevailing selling pressure and reinforces concerns that a sustainable price floor has yet to be established.