#Gate广场四月发帖挑战 Reversal! Bitcoin drops below $69,000 after yesterday breaking $70k+ and reaching a three-month high in the greed index, with profit-taking becoming the main culprit

The crypto market is experiencing a "rollercoaster" ride! Just yesterday (April 6), Bitcoin surged past the $70k mark, hitting a new high for April, and the market greed index reached a three-month peak, fueling optimism among investors. Today, Bitcoin has pulled back, falling below the critical support level of $69,000, with volatile price movements attracting market attention. As of press time, Bitcoin's 24-hour price swings have been intense, reaching a high of $70,351.46 and a low of $68,300.00. The current price is stable at $68,744.85, significantly down from yesterday’s high, and the core reason behind this is the concentrated release of profit-taking pressure. Combining the latest market news and key data, this article thoroughly analyzes the reasons behind this reversal, the future trend, and potential risks.

1. Market Highlights: From breaking $70k to falling below $69,000 in 24 hours—"rollercoaster" ride yesterday (April 6). The crypto market saw a brief rally as Bitcoin surged past $70k, hitting a new high for April, boosting market sentiment—Santiment’s tweet showed that the greed index hit its third-highest level in nearly three months, with most investors expecting the rally to continue, and market optimism reaching a peak. However, this optimism was short-lived, and today’s market turned around. On April 7, TradingView data shows that after Bitcoin hit a new April high of $70,275 on Bits, it quickly entered consolidation and then started to decline, eventually falling below the $69,000 support level. As of press time, the 24-hour high was $70,351.46, the low was $68,300.00, and the current price is $68,744.85, showing a clear short-term correction, perfectly confirming Santiment’s warning: market movements often defy public expectations. Notably, this pattern of "correction near $70k–$80k" is not new. An analysis article on X pointed out that since February 2026, every attempt by Bitcoin to test this range has faced liquidity shortages and profit-taking pressure, limiting rebounds. This time is no exception, as the market saturation is gradually becoming evident.

2. The real cause of the reversal: Concentrated profit-taking pressure release, internal market forces under stress. Bitcoin’s decline from $70,000 and fall below $69,000 is not primarily due to external negative shocks but results from internal market dynamics—specifically, the concentrated release of profit-taking pressure, which has become the key factor crushing the short-term rally. On-chain analytics platform Glassnode clearly states that when Bitcoin’s price approached the $70,000 region, hourly realized profits surged above $20 million. This data indicates that the local market is already saturated. Many investors, after Bitcoin broke $70,000, chose to cash out and lock in profits. This concentrated selling directly caused the price to fall, leading to a profit-taking correction. According to market rules, since February 2026, Bitcoin has struggled to effectively break through the $70,000–$80k resistance zone. The core issue is the dual suppression of liquidity shortages and profit-taking. Whenever the price nears this range, early investors tend to exit, while new capital struggles to absorb the selling pressure, causing prices to retreat in a "rise and fall" cycle. This recent correction is a repeat of that pattern.

3. Key signals analysis: Greed index, hash rate, liquidation data reveal hidden risks and opportunities. Behind this reversal, several key market signals deserve close attention. They not only reveal the inevitability of this correction but also hint at potential future directions, especially the decline in hash rate and liquidation risks, which require vigilance.
Signal 1: Greed index hits three-month high, beware of "contrarian indicator" effects. Around 11:25 pm on April 6, Santiment tweeted that the Bitcoin market greed index reached its third-highest level in nearly three months. Social data shows most investors expect the rally to continue, with market optimism at a peak. However, Santiment also warned that historical experience shows market trends often contradict public expectations; overly high greed can serve as a "contrarian indicator" for a reversal. This warning is backed by history—many times, high greed indices have preceded market corrections. When most market participants are bullish, it often signals the short-term rally is nearing its end, and profit-taking increases significantly. The rapid correction after the greed index hit a high confirms this pattern and reminds investors not to be blinded by short-term optimism.
Signal 2: Global hash rate drops to 1004 EH/s, mining industry under pressure that could impact price support. According to Wu’s Blockchain, in Q2 2026, the global Bitcoin hash rate fell to about 1004 EH/s, a decrease of approximately 5.8% quarter-over-quarter. This indicates that the Bitcoin mining industry is under significant pressure. The main reason is that the current price has fallen about 50% from its 2025 high, reducing mining profitability to historic lows. Some older mining rigs, unable to cover costs, have been shut down, pulling down the global hash rate. In terms of distribution, the concentration remains high, with the US, Russia, and China accounting for about 65%. Meanwhile, emerging markets like Kyrgyzstan and Paraguay, leveraging low-cost energy and new equipment, have seen hash rate growth against the trend. It’s important to note that hash rate is a core indicator of network stability. A decline not only affects security but could also weaken market confidence in Bitcoin. Long-term, if hash rate remains low, it could further suppress price growth. Since Bitcoin mining and price are interdependent, low profitability and hash rate declines weaken supply-side support, increasing volatility.
Signal 3: High liquidation risk, with $65,986 as a key support level. Besides profit-taking and hash rate decline, liquidation risk is another major hidden danger. Recent data shows that if Bitcoin falls below $65,986, the liquidation of long positions on major centralized exchanges (CEXs) could reach $70k; conversely, breaking above $72,826 could trigger $846 million in short liquidations. This indicates high leverage activity and intense long-short battles. If Bitcoin continues to decline and breaks $65,986, it could trigger large-scale long liquidations, causing a "liquidation cascade"—forced liquidations by exchanges, further pushing prices down, and triggering more liquidations, increasing short-term volatility. Conversely, breaking above $72,826 could trigger significant short liquidations, pushing prices higher. This high leverage liquidation risk adds uncertainty to the future trend and warns investors to be cautious with leverage to avoid margin calls. The crypto liquidation mechanism is inherently zero-sum: one side’s loss equals the other’s gain. High leverage amplifies this effect, and a reversal can lead to substantial asset devaluation.

4. Future trend outlook: Short-term consolidation, key support and resistance levels. Based on current market signals, profit-taking pressure, hash rate, and liquidation data, Bitcoin’s future will likely involve sideways consolidation, with increasing battles between bulls and bears. The key depends on whether two critical levels are broken or held.
Short-term (1-3 days): Profit-taking pressure will continue to be released, with Bitcoin likely oscillating between $68,300 and $69,500.
- $68,300 is the recent low during the 24-hour correction, serving as short-term support.
- $69,000 is a previous key support level; if broken, it becomes a short-term resistance. Failure to recover quickly could test the critical support at $65,986, raising liquidation risks. Additionally, the market’s high greed sentiment needs time to digest, making a strong rally unlikely in the short term.
Medium-term (1-2 weeks): The trend depends on two main variables—the extent of profit-taking and hash rate changes.
- If profit-taking subsides, new funds enter, and hash rate gradually recovers, Bitcoin could test the $70,000 level again, possibly challenging the liquidation pressure at $72,826.
- If hash rate continues to decline and Bitcoin drops below $65,986, triggering large-scale long liquidations, further correction is likely, testing lower support levels. Market sentiment shifts, such as cooling greed and returning rationality, could also reduce short-term speculation and stabilize prices.
Long-term (1-3 months): Bitcoin’s trend remains closely tied to macroeconomic factors and institutional strategies.
- Although the current hash rate decline impacts confidence short-term, as prices recover, mining profitability should improve, old rigs restart, and new equipment is deployed, potentially restoring hash rate.
- Meanwhile, institutional long-term holdings continue, providing long-term support. However, if the market remains in a "rise and fall" cycle, investor confidence could weaken, affecting long-term trends.

5. Risk warning (must read): The market is highly volatile, with risks and opportunities coexisting. Investors should remain rational and be aware of the following risks:
- Profit-taking risk: Short-term profit-taking pressure persists. If Bitcoin cannot quickly recover $69,000, further declines and margin calls could occur.
- Liquidation risk: $65,986 is a critical support; breaking below could trigger $70k in long liquidations, increasing volatility. Leverage traders should control positions carefully.
- Hash rate decline risk: Continued global hash rate decrease could impact network security and market confidence, suppressing long-term price growth.
- Sentiment reversal risk: Market greed remains high; if prices continue to fall, sentiment could reverse into panic selling.
- Resistance zone risk: The $70,000–$72,826 range faces strong resistance, making breakout difficult in the short term and potentially limiting rebounds.

6. Summary: Rational view after greed-driven correction—avoid blindly following the trend. Bitcoin’s rapid reversal from breaking $70,000 and hitting a three-month high in the greed index to falling below $69,000 is a market law in action—profit-taking pressure release, resistance in the $70,000–$80k range, and the "contrarian indicator" effect of greed all contributed to this correction. For investors, the key is to stay rational, not be swayed by short-term fluctuations: short-term traders should monitor the $68,300 support and $69,000 resistance levels, avoid high-leverage trading to prevent liquidation risks, and refrain from chasing or panic selling. Long-term investors can ignore short-term volatility, focus on hash rate recovery, institutional trends, and align their strategies with their risk tolerance to avoid impulsive decisions driven by emotions.