Bitcoin Drops to $65K as $14B in Shorts Face Liquidation

Bitcoin has fallen to about $65,000 as the broader crypto market continues its sharp selloff. Daily RSI is near 20, long liquidations have exceeded $4B since the Binance hack, and roughly $14B in short positions face liquidation compared with $700M in remaining long liquidity.

The immediate technical setup remains bearish. Bitcoin is testing a $69,000 to $63,000 Fibonacci support zone, with the 78.6% level near $64,000 acting as the closest line to watch. Total crypto market capitalization has returned to roughly its April 2021 area, while altcoin structure has broken more severely and Bitcoin dominance is declining.

Why it matters

The selloff is being amplified by weak near-term sentiment, including concern over Nvidia. A petition seeking the reinstatement of CEO Jensen Huang has collected more than 65,000 signatures, and Elon Musk has publicly supported it. The analyst argues that a reversal at Nvidia could quickly improve broader risk sentiment, although the market has not yet confirmed that outcome.

Institutional adoption continues alongside the price weakness. The New York Stock Exchange has selected Avalanche for tokenized stocks, suggesting that tokenized equities and institutional crypto infrastructure remain active even as trading sentiment deteriorates.

Market impact

A break below the $63,000 to $69,000 support band would expose Bitcoin to a deeper support area near $58,000. The position map is unusually asymmetric: long exposure has already been purged, while short liquidation liquidity is about 20 times larger. If support holds, a short squeeze could produce a rapid reversal, but the bearish trend remains intact until price establishes a durable base.

Altcoins remain weaker, with broken support and record-low momentum readings across several assets. Midnight is the notable exception, holding relative strength while the market declines. Its token distribution is nearing completion and its privacy-focused positioning may appeal to investors preparing for a longer-term bull market, although near-term consolidation remains possible.

Bitcoin's daily RSI of roughly 20 to 21 and its break below the 200-week moving average indicate extreme stress rather than a confirmed bottom. Traders should focus on whether the Fibonacci support holds, how the weekly close develops and whether short liquidations begin expanding the available upside liquidity.