Bitcoin’s Short-Term Rally Faces Challenges Amid Market Uncertainty

Bitcoin bounced off its recent lows on Friday after briefly flirting with a drop below the key $60,000 level late the previous day. While the move brought short-term relief, several analysts warned that selling pressure may not be over.

Price Recovers After Late Week Slide

Late Thursday, bitcoin slipped under $61,000 and hovered just above $60,000 a level many traders see as critical support. By 7:50 a.m. ET on Friday, the cryptocurrency had recovered modestly and was trading around $66,326. Despite the rebound, bitcoin remains under significant bitcoin price pressure, as broader market concerns continue to weigh on investor sentiment, keeping the asset deep in a bear market that began after it reached a record high above $126,000 in October.

Broader Market Weakness Weighs on Bitcoin

One major driver behind the sell-off is weakness in US technology stocks. Bitcoin often trades in line with other risk assets, especially tech shares, and tends to fall when those markets come under pressure.

At the same time, sharp swings in gold and silver prices have added to broader market instability.

Forced Liquidations Add to Downside Pressure

Automatic sell-offs, known as forced liquidations, have continued to push crypto prices lower. These occur when leveraged trading positions are closed once prices hit certain levels.

On Thursday alone, more than $2 billion worth of crypto positions were liquidated, according to Coinglass. That figure reached nearly $800 million by Friday.

Institutional Selling Gains Momentum

There are growing signs that large investors are reducing their exposure to bitcoin. US based exchange traded funds, which were major buyers last year, have turned into net sellers in 2026, according to CryptoQuant.

Markus Thielen, head of research at 10X Research, said institutional investors are actively unwinding their crypto positions.

ETF Investors Sitting on Heavy Losses

Thielen noted that the average purchase price for bitcoin through ETFs is near $90,000. With prices well below that level, many investors are now facing steep losses.

He added that much of the selling is happening during US trading hours, suggesting institutional players may be exiting positions rather than waiting for a recovery.

Bitcoin Still Far From Record Highs

Bitcoin is now down more than 40 percent from its all time-high. Other major cryptocurrencies have seen even deeper declines.

Ether and XRP are more than 60 percent below their peak levels, while Solana has fallen by over 70 percent.

Analysts Warn of Further Downside Risk

Market watchers say bitcoin’s earlier break below $70,000 could open the door to more losses. Analysts at 10X Research believe the price could eventually fall toward $50,000.

Thielen expects a short-term bounce or sideways movement but said another leg lower could come later in the summer.