Bitcoin is struggling as the price tests $62,000 as support — a level that would represent a significant extension of the correction from the cycle highs and a test of the structural foundation that bulls have been pointing to throughout the decline. The weakness is real and the selling pressure is persistent — and XWIN Research Japan has published an analysis that cuts through the competing macro narratives to identify what the on-chain data suggests is the actual driver of the current correction. Related Reading: HYPE Defies Market Selloff As Whales Withdraw Another $108M From Exchanges The explanations circulating in the market range from geopolitical tensions to Federal Reserve policy to Strategy&#8217;s recent small Bitcoin sale. XWIN Research Japan&#8217;s CryptoQuant analysis suggests a simpler and more fundamental explanation: buyers disappeared. The engine that powered Bitcoin&#8217;s 2024 to 2025 rally was not leverage, not retail momentum, and not speculative excess. It was consistent and sustained inflows into US spot Bitcoin ETFs — a structural demand source that absorbed supply methodically and provided the bid that supported progressively higher prices. In 2026, that engine reversed. ETF outflows increased while the Coinbase Premium remained negative for an extended period. Confirming that US institutional demand, the most durable and most significant category of buyer the market has ever seen, withdrew from active accumulation. Bitcoin Coinbase Premium Gap | Source: CryptoQuant The Realized Cap data quantifies the consequence. Bitcoin&#8217;s Realized Cap declined from approximately $1.12 trillion to $1.08 trillion — a reduction that represents nearly $40 billion of capital leaving the network. When the metric that measures actual invested capital falls by that magnitude, the market is not experiencing a sentiment correction. It is experiencing a genuine demand withdrawal. Bitcoin Realized Cap | Source: CryptoQuant 40 Billion Left the Network The XWIN Research Japan analysis traces where the capital went after it left Bitcoin. US equities — particularly AI-related companies delivering strong earnings growth, executing aggressive share buyback programs, and driving the S&amp;P 500 to record highs — presented a competing allocation that many institutions found more immediately compelling than Bitcoin in the current rate environment. Capital did not evaporate. It rotated into assets with visible profit growth and near-term catalysts that Bitcoin&#8217;s liquidity-dependent structure cannot currently match. The futures market amplified the price decline without causing it. Open Interest dropped sharply, Funding Rates normalized, and more than $150 million in leveraged long positions were liquidated between June 3 and June 4. Those liquidations were a consequence of weakening demand rather than its origin — derivatives unwinding into a market already lacking the spot bid needed to absorb forced selling. The comparison to 2022 is where the analysis provides its most important reassurance. Long-term holders remain largely intact. Exchange balances are still historically low. The current correction does not resemble the panic-driven supply excess that characterized the previous cycle&#8217;s collapse. The problem is not too much selling. It is too little buying. The recovery conditions the report identifies are specific. ETF flows returning to positive territory, the Coinbase Premium recovering above zero, Realized Cap resuming growth, and capital concentration in AI stocks beginning to slow — these are the signals that would confirm demand is returning rather than rotating further away. June&#8217;s correction was demand-driven. The next major Bitcoin trend will be determined by the same force that caused it. Related Reading: Bitcoin’s Most Important Metric Flashes Warning As Bulls Fight To Hold $60K Bitcoin Clings To $62K As Breakdown Reaches Critical Support Bitcoin remains under intense pressure after a violent selloff erased the entire April-May recovery and pushed price back into the same support zone that marked the February capitulation low. The daily chart shows BTC trading around $62,500 after briefly dipping near $61,000, placing the market directly inside the most important demand area of the year. Bitcoin consolidates below the $63K level | Source: BTCUSDT chart on TradingView Technically, the structure has deteriorated significantly. Bitcoin has lost the $72,000-$74,000 support zone that previously acted as a major pivot throughout April and May. That area has now flipped into resistance and represents the first major obstacle should a relief rally emerge. More importantly, the breakdown occurred with expanding volume, suggesting the move is being driven by aggressive selling rather than a temporary liquidity vacuum. Related Reading: Smart Money Keeps Buying HYPE Despite Rising Market Fear – Price Holds Above $70 Level The market is now testing the February bottom region near $61,000-$64,000. Unlike previous pullbacks, this support is being challenged after a sequence of lower highs and lower lows, confirming bearish market structure across the daily timeframe. BTC also remains below the 50-day, 100-day, and 200-day moving averages, reinforcing the dominance of sellers. However, this area carries historical significance. The February capitulation ultimately marked the beginning of a multi-month recovery. If buyers defend the current zone, Bitcoin could attempt to build a base and stabilize. If support fails decisively, the next downside target becomes the psychological $60,000 level, followed by the high-$50,000 region. Featured image from ChatGPT, chart from TradingView.com

Bitcoin is struggling as the price tests $62,000 as support — a level that would represent a significant extension of the correction from the cycle highs and a test of the structural foundation that bulls have been pointing to throughout the decline. The weakness is real and the selling pressure is persistent — and XWIN &#8230;

Why Did Bitcoin Crash? On-Chain Data Points To One Missing Ingredient

A cryptocurrency analyst has pointed out how Dogecoin has returned to the 
support level of a Parallel Channel following the latest market decline. 
Dogecoin Is Potentially Following A Parallel Channel In a new post on X, 
analyst Ali Martinez has talked about how Dogecoin is currently trading with 
respect to a Parallel Channel. This type of technical analysis (TA) pattern 
forms whenever an asset moves between two parallel trendlines. Related 
Reading: Bitcoin Price Back At $63,000 Despite 1.2 Million BTC Absorption The 
upper level of the channel can act as a source of resistance, while the lower 
can provide support. Together, the trendlines keep the price locked between 
them. If either of these levels fails, then the price may see a continuation 
of the trend in the direction of the break. That is, a surge above the pattern 
can be a bullish signal, while a fall under it is a bearish one. Parallel 
Channels can be divided into a few different categories based on how the 
channel is oriented with respect to the graph axes. The &#8220;Ascending Channel&#8221; 
forms when the trendlines point up, while the &#8220;Descending Channel&#8221; involves a 
negative slope. In the context of the current topic, the third and simplest 
type is of interest: a Parallel Channel that&#8217;s parallel to the time-axis. This 
pattern corresponds to a phase of true sideways consolidation in the asset. 
Now, here is the chart shared by Martinez that shows the Parallel Channel that 
the daily Dogecoin price has been trading inside over the past few months: As 
displayed in the above graph, Dogecoin retested the upper level of the 
Parallel Channel in May, but ended up finding rejection. Since then, the 
memecoin has sharply moved down the width of the channel, reaching the bottom 
level. During this descent, the asset not only broke under the support of the 
midway level, but it also lost the 50-day moving average (MA). With DOGE now 
retesting the lowest trendline of the channel, it remains to be seen how the 
asset will develop in the coming days. &#8220;As long as this support holds, I think 
a recovery toward $0.1019 and $0.1156 remains likely,&#8221; noted the analyst. &#8220;A 
breakdown, however, could expose the next major supply zone near $0.067.&#8221; 
Related Reading: Bitcoin Traders Turn Most Fearful In 2 Months Following Crash 
While Dogecoin has still not broken out of its Parallel Channel, another 
altcoin, Cardano, has seen a different outcome. As Martinez has highlighted in 
another X post, the weekly ADA price has fallen under the support level of a 
long-term channel recently. Parallel Channel breakouts are often assumed to be 
of the same length as the width of the channel. Based on this, the analyst 
explained, &#8220;For Cardano $ADA, my targets are $0.11 and $0.051.&#8221; DOGE Price 
Following the latest continuation of the drawdown, Dogecoin has reached the 
$0.843 level. Featured image from Dall-E, chart from TradingView.com

A cryptocurrency analyst has pointed out how Dogecoin has returned to the support level of a Parallel Channel following the latest market decline. Dogecoin Is Potentially Following A Parallel Channel In a new post on X, analyst Ali Martinez has talked about how Dogecoin is currently trading with respect to a Parallel Channel. This type &#8230;

Dogecoin Tests Channel Floor Again: Breakdown Or Rebound?

The inflows suggest a potential shift in investor sentiment, indicating 
renewed interest and confidence in cryptocurrency ETFs.
The post Ethereum and Bitcoin spot ETFs snap lengthy outflow streaks with 
fresh inflows appeared first on Crypto Briefing.

The inflows suggest a potential shift in investor sentiment, indicating renewed interest and confidence in cryptocurrency ETFs. The post Ethereum and Bitcoin spot ETFs snap lengthy outflow streaks with fresh inflows appeared first on Crypto Briefing.

Ethereum and Bitcoin spot ETFs snap lengthy outflow streaks with fresh inflows

The investigation highlights the tension between emerging crypto platforms and 
traditional legal frameworks, potentially influencing global regulatory 
trends.
The post South Korean police investigate Polymarket users for illegal gambling 
appeared first on Crypto Briefing.

The investigation highlights the tension between emerging crypto platforms and traditional legal frameworks, potentially influencing global regulatory trends. The post South Korean police investigate Polymarket users for illegal gambling appeared first on Crypto Briefing.

South Korean police investigate Polymarket users for illegal gambling

Japan&#8217;s nuclear reactor rebuild plan highlights a strategic shift towards 
energy security and sustainability amid rising tech-driven power demands.
The post Japan proposes rebuilding nuclear reactors to meet rising power 
demand appeared first on Crypto Briefing.

Japan&#8217;s nuclear reactor rebuild plan highlights a strategic shift towards energy security and sustainability amid rising tech-driven power demands. The post Japan proposes rebuilding nuclear reactors to meet rising power demand appeared first on Crypto Briefing.

Japan proposes rebuilding nuclear reactors to meet rising power demand

Investor sentiment is dampened by economic uncertainty, potentially impacting 
broader financial markets and digital asset adoption.
The post Bitcoin ETFs shed $1.7B in a week as rate hike fears mount appeared 
first on Crypto Briefing.

Investor sentiment is dampened by economic uncertainty, potentially impacting broader financial markets and digital asset adoption. The post Bitcoin ETFs shed $1.7B in a week as rate hike fears mount appeared first on Crypto Briefing.

Why Did Bitcoin Crash? On-Chain Data Points To One Missing Ingredient

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