Bitcoin continues to struggle to push above the $66,000 level as persistent selling pressure weighs on sentiment across the crypto market. Despite temporary attempts to recover, momentum remains weak, with consumers showing limited confidence while volatility remains high. The broader environment — created by cautious liquidity conditions, high uncertainty, and limited appetite — has kept Bitcoin locked in a consolidation phase rather than a sustained recovery.
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Increasingly, Bitcoin is not behaving like “digital gold,” a story that has dominated market discourse for years. Rather than acting as a hedge against times of economic depression, Bitcoin has recently traded in tandem with equity markets, particularly technology stocks. This correlation suggests that capital markets treat Bitcoin as a higher beta risk asset than a store of value relative to precious metals.
This change challenges a long-standing challenge within the crypto ecosystem. While the digital gold narrative remains influential, current price behavior indicates that liquidity cycles, institutional positioning, and the potential for greater risk have a stronger short-term impact. Whether Bitcoin finally regains its perceived role as a safe haven or continues to behave as a risky asset will likely depend on changing macro circumstances and investor attitudes.
Correlation with Nasdaq Highlights a Structural Shift
According to On-Chain Mind, Bitcoin’s correlation with the Nasdaq has been structurally stronger since 2020, marking a major shift in the way money has become a commodity. While previous cycles have shown multiple congruences, recent data reveals that BTC is now trading in line with technical parity. Notably, very sharp spikes tend to accompany market declines, especially during bear markets.
This pattern is important. In theory, assets classified as “digital gold” would be expected to be garnished from risky assets in times of stress. Instead, the data suggests the opposite: when liquidity contracts and shares are sold, Bitcoin tends to follow. This synchronized decline shows that institutional funds are increasingly treating BTC as part of a broader risk complex rather than as a stand-alone hedge.
Whether this development meets ideological expectations is secondary. The fact is that capital flows, portfolio construction structures, and mass-driven positioning now play a major role in Bitcoin price formation. Capital allocations appear to manage BTC exposure in line with growth rates, reacting to common currency signals, rate expectations, and volatility patterns.
Until the correlation principles change meaningfully, Bitcoin’s behavior is likely to remain more closely linked to cycles of high risk than to traditional security changes.
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Bitcoin Price Structure Shows Continued Downtrend Pressure
Bitcoin continues to trade under clear technical pressure, the price action is struggling to find the $66,000–$67,000 area after a sharp corrective move from the end of 2025. The weekly chart shows a decisive break below the 50-week moving average, followed by a rejection near that level, which now acts as strong resistance instead of support. These changes usually indicate weak medium-term momentum.
The price is currently just above the 200-week moving average, a level historically associated with major cyclical support. Although this area often attracts strategic buyers, repeated testing without strong replication can weaken its effectiveness. Increased volume during the recent downward move suggests distribution rather than accumulation, although confirmation will require further follow-up.
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The market structure also shows a sequence of lower highs from the high near the $120K region, indicating that the bullish continuation has stopped. Until Bitcoin regains the mid-$70K range and stabilizes above the key moving averages, rallies may remain positive rather than reverse.
That said, getting close to long-term support means volatility could increase. A repetition of the structure or the depth of the capitulation phase is still possible, depending largely on the conditions of liquidity, extreme sensitivity, and the position of the institution in the coming weeks.
Featured image from ChatGPT, chart from TradingView.com
