Here’s Why Bitcoin Price Could Test $65K After Its 8-Week Drop

Bitcoin price remains under heavy pressure after an eight-week decline pushed the asset toward its weakest level in two months. $BTC traded near $66,989 on June 3, after falling more than 10% over the past week.

Market sentiment also weakened, with the Fear and Greed Index dropping to 11, a level marked as Extreme Fear. On-chain data shows that large Bitcoin holders have increased selling, while smaller wallets have continued to add limited amounts during the dip.

Bitcoin Whale and Shark Selling Adds Pressure

Bitcoin’s latest decline has drawn attention to the behavior of key wallet groups. Data shared by Santiment shows that whales and sharks holding between 10 and 10,000 $BTC dumped 24,602 coins over the past week. That marks an 18% drop in their collective holdings during the period.

This selling matters as larger holders often shape short-term direction when market depth weakens. Their exits can increase pressure during sharp declines, especially when price already trades below major support zones. Bitcoin’s break below $70,000 also triggered more caution among traders, with many watching whether this selling slows near the $65,000 region.

Bitcoin Whales | Source: Santiment

Meanwhile, small wallets holding under 0.01 $BTC moved in the opposite direction. This group added 61 $BTC over the past month, equal to a 12% rise in their holdings. The amount remains small compared with whale and shark sales, yet it shows that some retail buyers still view lower prices as an entry point.

Santiment’s data suggests traders may need both groups to shift direction before a stronger recovery forms. A move from whale selling to accumulation, along with weaker retail dip-buying enthusiasm, could offer a signal that the market has reached a more durable bottom.

$BTC Extreme Fear Deepens Near $66,989

Market sentiment has moved sharply lower as Bitcoin trades near $66,989. The Fear and Greed Index reading of 26 shows that traders remain highly defensive after the latest sell-off. Such readings often appear during periods of forced selling, weak leverage conditions, and broad risk reduction.

Crypto market capitalization stands near $2.40 trillion, with daily trading volume around $143.61 billion. Elevated volume shows that traders remain active, even as price action weakens. Ethereum also fell to about $1,872.40 after a 5.36% daily decline, while Bitcoin dominance stayed near 55.93%.

Technical Setup Points Toward $65K

Bitcoin’s chart remains fragile after repeated failures near the $70,000 to $75,000 resistance area. Analysts have pointed to that zone as a major barrier after $BTC lost momentum there and turned lower. Price now trades below several short and medium-term moving averages, which keeps sellers in control.

CryptoQuant’s HODL Waves analysis places a possible local bottom range between $65,000. Bitcoin has already moved into the upper part of that area, making the $65,000 region a key level for traders this month. A daily close below current support could pull attention toward $60,000 and nearby liquidity zones.

Meanwhile, analyst Trader Tardigrade noted that Bitcoin’s daily RSI has reached the oversold zone again, a level that has previously aligned with strong rebounds. The chart shows that $BTC price has often followed RSI swings, with overbought readings marking local tops and oversold readings appearing near recovery points.

$BTC RSI | Source: X

He added that the RSI has formed higher lows along an ascending trendline, while Bitcoin price has followed a similar structure. If the same pattern holds, the latest oversold reading could support a bullish reversal attempt.