#Gate广场四月发帖挑战 Reversal! Bitcoin drops below $69,000 after yesterday breaking $70k+ and reaching a new 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 in April, and the market sentiment was heated—Santiment's tweet showed the greed index reached its third-highest level in nearly three months, with most investors expecting the rally to continue, reaching a peak of optimism. But this optimism didn't last long, and today the market reversed. On April 7, TradingView data shows that after Bitcoin hit a new high of $70,275 on Bits, it quickly entered consolidation and then started to decline, eventually breaking 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 stable at $68,744.85, a significant pullback from yesterday's high. The core reason behind this movement is the concentrated release of profit-taking pressure. Combining the latest market news and key data, this article provides a comprehensive analysis of the market reversal, future trends, 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 in April, boosting market sentiment—Santiment's tweet showed the greed index reached its third-highest level in nearly three months, with most investors expecting the rally to continue, and market optimism peaked. However, this optimism was short-lived, and today the trend reversed. On April 7, data from TradingView shows that after Bitcoin hit a new high of $70,275 on Bits, it quickly consolidated and then declined, breaking below the $69,000 support. 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, indicating a clear short-term correction, perfectly confirming Santiment's warning: market movements often defy public expectations. Notably, this "approaching $70k–$80k zone then correction" pattern 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 pressures, limiting rebounds. This time was no exception, and the market saturation has become increasingly evident.
2. The main cause of the reversal: concentrated profit-taking pressure release, internal market forces under stress. The core reason for Bitcoin's fall from $70,000 and breaking below $69,000 is not external negative shocks but changes within the market—profit-taking pressure was released in a concentrated manner, becoming the key factor crushing the short-term rally. On-chain analysis platform Glassnode clearly states that when Bitcoin approached the $70,000 region, the actual profit per hour 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 decline, forming a profit-taking correction. According to market rules, since February 2026, Bitcoin has failed to effectively break through the $70,000–$80k resistance zone, mainly due to liquidity shortages and profit-taking pressures. Whenever the price nears this range, early investors tend to exit, while new funds struggle to absorb the selling pressure, leading to price corrections—forming a "rise and fall" cycle. This time, the pattern has played out again.
3. Key signals analysis: Greed index, hash rate, liquidation data reveal hidden risks and opportunities. Behind the reversal, several key market signals deserve close attention—they reveal the inevitability of this correction and 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 greed index reached its third-highest level in nearly three months. Social data shows most investors expect the rally to continue, and market optimism is strong. But Santiment also warned that historical experience shows market trends often go against public expectations; overly high greed can serve as a "contrarian indicator" for a market reversal. This warning is backed by history—many times, high greed indices have preceded 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 new 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 may impact coin price support. According to Wu's Blockchain latest news, 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, with the price down about 50% from the 2025 high, mining rewards have fallen to historic lows. Some older mining machines, unable to cover costs, have been shut down, pulling down the global hash rate. In terms of distribution, the concentration remains high—about 65% of hash power is held by the US, Russia, and China, while emerging markets like Kyrgyzstan and Paraguay, leveraging low-cost energy and new equipment, have seen hash rate growth against the trend. Hash rate is a core support for network stability; a decline not only affects security but may also weaken market confidence in Bitcoin. Long-term, if hash rate remains low, it could further suppress the price. This is a key variable to watch. Since Bitcoin mining and price are interdependent, low mining rewards and declining hash rate weaken supply-side support, increasing volatility.
Signal 3: High liquidation risk, $65,986 becomes a critical support level. Besides profit-taking and hash rate decline, liquidation risk is another major hidden danger. Latest data shows that if Bitcoin falls below $65,986, the liquidation of longs on major centralized exchanges (CEXs) could reach $70k; conversely, if it breaks above $72,826, the liquidation of shorts could reach $846 million. This indicates high leverage activity and intense long-short battles. If Bitcoin continues to decline and breaks below $65,986, it could trigger large-scale long liquidations, causing a "cascade effect"—forced liquidations by exchanges, further pushing prices down, and triggering more liquidations, increasing short-term volatility. Conversely, breaking above $72,826 could trigger large-scale short liquidations, pushing prices higher. The high leverage and liquidation risks add uncertainty to the future trend and remind investors to be cautious with leverage to avoid liquidation risks. The liquidation mechanism in crypto is a zero-sum game—losses for one side are gains for the other—and high leverage amplifies this effect. When the market reverses, assets can sharply decline.
4. Future trend forecast: Short-term consolidation, focus on two key support and resistance levels. Based on current market signals, profit-taking pressures, hash rate, and liquidation data, Bitcoin's future will likely be characterized by 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 release, and Bitcoin is likely to fluctuate between $68,300 and $69,500. The $68,300 level is the recent low and acts as short-term support; the $69,000 level is a previous key support, which, if broken, will turn into short-term resistance. If it cannot be recovered quickly, the price may test the critical support at $65,986, with risks of further long liquidations. Additionally, the high greed index sentiment needs time to digest, making a strong rally unlikely in the short term.
Medium-term (1-2 weeks): The trend depends on two core variables—profit-taking release and hash rate changes. If profit-taking subsides, new funds enter, and hash rate gradually recovers, Bitcoin could retest the $70,000 level and even challenge the $72,826 liquidation pressure zone. But if hash rate continues to decline and Bitcoin drops below $65,986, triggering large-scale long liquidations, the price could further decline to test lower supports. Market sentiment changes will also be influential—if greed cools and investors become more rational, short-term speculation may decrease, easing volatility.
Long-term (1-3 months): Bitcoin's long-term trend remains closely tied to macroeconomic conditions and institutional strategies. Although the current hash rate decline impacts confidence short-term, as prices recover, mining rewards will improve, old miners will restart, and new equipment will be deployed, leading to a gradual hash rate recovery. Meanwhile, institutional long-term holdings continue to grow, providing long-term support. However, if the market remains in a "rise and fall" cycle, investor confidence could weaken, affecting the long-term trend.
5. Risk warning (must read): The current 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 long liquidations are possible.
Liquidation risk: $65,986 is a key support; breaking below could trigger $70k in long liquidations, increasing volatility. High-leverage traders should control positions timely.
Hash rate decline risk: Continued global hash rate decrease may impact network security and market confidence, suppressing long-term price growth.
Sentiment reversal risk: Market greed remains high; if the correction continues, sentiment could reverse, leading to panic selling.
Resistance level pressure: The $70,000–$72,826 range faces strong resistance, making breakout difficult in the short term and potentially limiting rebounds.
6. Summary: After greed, a correction—stay rational, avoid blindly following the trend. Bitcoin's rapid reversal from breaking $70,000 and reaching a three-month high in the greed index to falling below $69,000 is a market law—profit-taking pressure release, resistance in the $70,000–$80k zone, 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 focus on whether $68,300 support and $69,000 resistance are broken, avoid high-leverage trading 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 with their risk tolerance to make rational decisions.