NEW YORK — Bitcoin fell sharply Monday morning, sliding below a closely watched rising-channel support line that had guided the cryptocurrency higher since early February, according to composite pricing data from CoinGecko.
The flagship token tumbled as much as 6.2% to an intraday low of $67,480 shortly after 11 a.m. EDT, breaching the lower boundary of a trend channel that analysts said had provided a technical floor near $69,000 for almost eight weeks. Ether and other major alt-coins tracked the move, knocking roughly $120 billion off the overall market capitalization in 24 hours, figures from CoinMarketCap show.
“The break is technically significant because it signals waning bullish momentum just as macro headwinds resurface,” said Marcus Sotiriou, market analyst at digital-asset broker GlobalBlock. “If spot ETF inflows cool and the dollar continues to firm, we could easily retest the $64,000–$65,000 zone.”
Liquidation data from derivatives-platform Coinglass indicated that about $540 million worth of leveraged long positions were wiped out across major exchanges in the 12 hours to noon EDT, the largest single-day shakeout since March 18. KuCoin’s research desk flagged a secondary support cluster near $62,800, citing options open-interest positioning.
The downdraft followed last week’s remarks from several Federal Reserve officials suggesting a reduced likelihood of interest-rate cuts before late summer. A stronger U.S. dollar index—up 0.3% Monday—has historically weighed on bitcoin, which many traders treat as a high-beta risk asset.
Still, some strategists played down the breakdown. “If anything, shorter-term leverage got too frothy,” said Lisa Chang, head of crypto strategy at London-based Odeon Capital. “Long-term fundamentals—rising corporate adoption and the upcoming Bitcoin halving—remain constructive.”
The next defining test, technicians say, lies at the 50-day moving average near $66,200. A decisive close below that level could embolden sellers, while a swift rebound above $70,000 would suggest today’s move was a false breakdown.
Market participants will watch Tuesday’s U.S. consumer-confidence reading and Friday’s PCE inflation data for clues about the Fed’s path—numbers that could either deepen the slide or calm jittery traders. Until then, volatility is expected to stay elevated, with funding rates on perpetual futures already turning negative on several offshore venues, signaling a tilt toward bearish positioning.