Bitcoin extended its decline on Friday, briefly dipping below $62,000 to a session low around $61,100, as weakening demand and intensifying selling pressure from short-term holders weighed on the largest cryptocurrency. The fresh selloff comes amid a broader risk-off environment across global markets, with Bitcoin now trading well below the $65,000 mark.
On-chain data from CryptoQuant reveals a dramatic contraction in market activity. Spot demand has fallen to -272,000 BTC on a 30-day cumulative basis, while futures demand has dropped to -229,000 BTC. The total demand contraction now sits near 501,000 BTC — the weakest point in the current market cycle. According to analysts, this indicates that selling pressure has consistently overwhelmed buying interest throughout the year, even during brief institutional inflows. The decline is attributed to negative macroeconomic conditions, including elevated bond yields, persistent inflation, and geopolitical uncertainty, which have redirected liquidity toward equities, forex, and precious metals.
Short-term holders (STHs) are showing signs of capitulation. Roughly 53,800 BTC were sent to exchanges at a loss, while inflows from profitable positions dried up to near zero. This behavior reflects growing panic among recent buyers as unrealized losses mount. Historically, such capitulation events have appeared near local bottoms, but analysts caution they are not standalone reversal signals.
Additionally, market sentiment weakened after Strategy (formerly MicroStrategy) disclosed its first Bitcoin sale in over four years, offloading 32 BTC to fund preferred stock dividend payments. The company's massive Bitcoin holdings are now facing an estimated $10.8 billion unrealized loss.
Technical indicators remain firmly bearish. Bitcoin is trading below the 20, 50, and 100-day exponential moving averages, which form a resistance cluster between $72,900 and $75,800. The hourly chart shows a bearish trend line with resistance near $63,200, and BTC is below the 100-hour simple moving average. The Relative Strength Index (RSI) hovers near 27, signaling deeply oversold conditions, while the MACD is gaining pace in bearish territory. Immediate support lies at $62,000, with major supports at $61,200 and $60,000. A sustained break below $60,000 could expose deeper levels around $59,058 and $55,770. On the upside, BTC must reclaim $64,000 and then $65,500 to shift momentum, but the current structure suggests further losses are likely unless demand recovers.
