Bitcoin Slides to $70K as Cost Basis Breaks, Analysts Warn of Deeper Drop

Bitcoin is on "the edge of a breakdown," reported onchain analytics firm Swissblock on Monday. The analysts noted that the loss of the "Cost Basis Zone" has already triggered a decisive drawdown. Consolidation inside this zone appeared constructive, but there was no confirmation, and $BTC failed to hold it, showing little strength when trying to reclaim it, they said. "That shifted the framework from consolidation into breakdown risk."

$BTC Needs to Re-enter The Battlefield

The Cost Basis Zone is currently between around $72,000 and $79,000, according to the Swissblock chart. It measures the price range where recent Bitcoin buyers, especially short-term holders, acquired their $BTC on average and acts as a key support/resistance level based on the actual purchase prices of coins in circulation. "The only way $BTC recovers its bullish posture is by re-entering the Cost Basis Battlefield with strength." Bitcoin is on the edge of a breakdown. The loss of the Cost Basis Zone has already triggered a decisive drawdown. At first, consolidation inside the cost-basis battlefield looked constructive. But consolidation was not confirmation. $BTC failed to hold the zone, then showed… pic.twitter.com/6qGc0nYKYn — Swissblock (@swissblock__) June 1, 2026

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Bitcoin is "under growing pressure," stated Glassnode on Monday. "Sellers dominate spot, ETF outflows accelerate to $1.3 billion, and fresh capital has stalled," it added. "Structure has broken, and momentum favours the downside near-term." Bitcoin ETP provider Bitcoin Capital echoed the sentiment, stating that the recovery stalled exactly at the short-term holder cost basis and rolled over. Key on-chain metrics have broken down at current price levels, which are a "contained drawdown and failed recovery." Contained, in roughly the same way a kitchen fire is contained to the kitchen.

"Bitcoin's weakness against the wider market has reached its highest point ever," commented the usually bullish 'Sykodelic'. "It is now the only macro asset not in expansion." "At this moment, Bitcoin has completely decoupled from every other macro asset, for the first time since it was created." It will also be the first time any macro asset has "created its own unique path and ignored the underlying forces that govern financial markets," he added. A unique path, apparently, that runs straight into a wall.

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