Bitcoin price slid sharply on June 2, breaching the $70,000 threshold and hitting its lowest level in two months, according to Cointelegraph. The decline accelerated intraday as selling pressure intensified. The $70,000 level had been a key psychological support, and its break prompted traders to quickly shift focus to technical indicators. The move triggered a massive liquidation event across the crypto market, with $800 million in leveraged positions wiped out over 24 hours. Long positions suffered heavy losses, with cascading de-leveraging effects amplifying the sell-off. This marked one of the sharpest price swings and long liquidation events in recent weeks.
Technical analysts now highlight Bitcoin's 200-day moving average as a critical level, as the price now hovers dangerously close to this long-term trend gauge. The 200-day MA is historically viewed as a key dividing line between bull and bear markets, and its breach could signal a potential trend reversal. Market participants widely believe that the outcome of this test will have significant implications for the short-term direction. In a market heavily saturated with leverage, rapid price moves can easily trigger forced liquidations, which in turn exacerbate volatility and add uncertainty to support levels. With Bitcoin just a stone's throw away from the 200-day MA, traders are anxiously watching for the next decisive move.