Bitcoin Faces Mounting Pressure as Key Support Levels Tested

The cryptocurrency market is witnessing a tense period for Bitcoin, with its price probing crucial support zones. Underlying this technical weakness is a significant shift in investor behavior, revealed by on-chain data, which points to long-term holders beginning to offload their assets. This selling pressure, combined with liquidity concerns at major service providers, is contributing to a climate of extreme caution.

A primary driver of the current downturn appears to be a change in the composition of coin ownership. Blockchain analytics, specifically the "Hodler Net Position Change" metric, indicate that seasoned investors—typically those who hold coins for more than 155 days—are increasingly reducing their exposure. This capital withdrawal suggests a fading belief in an imminent price recovery.

Concurrently, the influence of short-term traders on the market is growing. This group tends to react more swiftly to price fluctuations by selling, thereby increasing the fragility of current price levels. Bitcoin has shed approximately 26% of its value in the past 30 days alone and now trades more than 46% below its all-time high recorded in October 2025. Technical indicators, including Glassnode's "True Market Mean," corroborate this bearish trend.

Should investors sell immediately? Or is it worth buying Bitcoin?

Infrastructure Strain Amidst Continued Development

The ongoing market turbulence is testing the industry's infrastructure. BlockFills, a crypto service provider backed by Susquehanna, recently had to halt customer withdrawals—a classic warning sign of liquidity constraints during periods of high volatility.

Despite these challenges, technological progress within the ecosystem continues. Ignoring the price declines, U.S. exchange Coinbase announced the launch of "Agentic Wallets." These AI-powered tools are designed to allow artificial intelligence to execute transactions autonomously, highlighting the ongoing long-term development of the blockchain space.

A Precarious Balance for Investors

The prevailing market mood is now characterized by "extreme fear." While occasional dips are still finding buyers, analysts describe the underlying demand as hesitant and insufficiently aggressive to spark an immediate trend reversal. For investors, the situation remains precarious as the market searches for a bottom, caught between persistent selling pressure and the sector's long-term technological prospects.