Bitcoin slipped closer to $68,000 as repeated failures to hold above $70,000 left the market vulnerable to a deeper pullback.
The decline gained pace near the bottom of the $65,000–$73,000 trading range that has persisted since late March, highlighting weak support when prices turn lower.
Onchain data from Glassnode points to soft participation, with declining volumes and limited activity despite recent price rebounds. This suggests that the recovery has lacked strong underlying demand.
According to trading firm Caladan, the market is also facing continued distribution from large holders, while demand remains subdued. As a result, bitcoin is increasingly dependent on macro-driven flows and derivatives positioning.
Options markets are reinforcing this cautious outlook. Elevated implied volatility relative to realized volatility indicates that traders are actively hedging against downside risks.
A key concern is the negative gamma setup below $68,000. In this zone, market makers may be forced to sell as prices fall, amplifying downward pressure and increasing the risk of a sharper decline toward $60,000.
Sentiment on prediction platforms echoes this view, with traders assigning higher odds to downside scenarios and reducing expectations for a significant rally.
