Bitcoin sits “on the edge of a breakdown,” according to on-chain analytics firm Swissblock.
Analysts said the loss of the “Cost Basis Zone” has already triggered a decisive drawdown.
Consolidation inside that zone initially looked constructive, but no confirmation arrived and BTC failed to hold the level, showing little strength when attempting to reclaim it.
“That shifted the framework from consolidation into breakdown risk.”
BTC Needs to Re-enter the Battlefield
Swissblock’s chart places the Cost Basis Zone roughly between $72,000 and $79,000.
The zone represents the price range where recent Bitcoin buyers—particularly short-term holders—bought their coins on average. It serves as an important support and resistance area 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,” the analysts said.
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
On the same day, Glassnode warned Bitcoin is “under growing pressure,” noting that sellers dominate spot markets, ETF outflows accelerated to $1.3 billion, and fresh capital has stalled.
“Structure has broken, and momentum favours the downside near-term.”
Bitcoin ETP provider Bitcoin Capital also echoed the view, stating the recovery stalled precisely at the short-term holder cost basis and then rolled over.
Key on-chain metrics have deteriorated at current price levels, signaling what some describe as a “contained drawdown and failed recovery.”
Well-known commentator Sykodelic observed that “Bitcoin’s weakness against the wider market has reached its highest point ever,” adding that it is now the only major macro asset not in expansion.
He suggested this marks the first time Bitcoin has fully decoupled from other macro assets since its inception and the first instance of any macro asset following an entirely unique path, independent of broader market forces.
Bitcoin Drops to $70,000
In early Asian trading on Tuesday, Bitcoin slid to $70,000, a roughly 3.8% decline for the day.
The cryptocurrency is down about 8% for the week and faces the risk of slipping back into the $60,000 area, returning to levels last seen in early April.
While Bitcoin has traded largely range-bound since early February, the current weakness raises the possibility of a move toward the lower bound of that range—around $65,000.
Adding to bearish sentiment, a recent SEC filing showed Michael Saylor’s Strategy sold 32 BTC in late May for about $2.5 million.