Bitcoin Plunges 17% in Four Days

Bitcoin's sharp 17% decline over the past four days has triggered over $4.5 billion in liquidations across the crypto market, marking one of the most severe deleveraging events this year. The sell-off accelerated after Bitcoin failed to hold key support near $70,000, with analysts now warning of a potential breakdown below the psychologically significant $60,000 level. Technical indicators suggest bearish momentum remains strong, as the daily RSI has dipped into oversold territory and moving averages are converging for a potential death cross.

Market sentiment has shifted decisively bearish, with institutional inflows slowing and macro headwinds such as rising bond yields and a stronger US dollar adding pressure. However, some analysts view the rapid liquidation as a capitulation event that could set the stage for a relief rally, particularly if Bitcoin finds support near $60,000. The coming days will be critical in determining whether this is a deeper correction or a temporary shakeout.

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