Bitcoin breaks key support level, but are buying opportunities emerging?

Bitcoin is once again under heavy pressure. The largest cryptocurrency has fallen through the key support line at $70.000, and investors are now nervously eyeing the lower boundary of its trend channel at $65.000. A combination of disappointing US inflation data, political uncertainty and substantial outflows from Bitcoin ETFs has created a near-perfect storm.

The main culprit is inflation in the largest Western economies, together with nerves on US stock markets following the results of the midterm elections.

Both headline and core inflation came in higher than expected. As a result, fears are growing that the Federal Reserve will have to keep interest rates high for longer, or even raise them again.

That is generally bad news for Bitcoin, gold and other assets that generate no yield of their own. Higher returns on US government bonds make riskier investments relatively less attractive.

ETFs

At the same time, institutional investors appear to be cautiously heading for the exit. According to recent figures, US spot Bitcoin ETFs recorded roughly $1.28 billion in weekly outflows. In addition, more than $1 billion in leveraged crypto positions are said to have been liquidated within 24 hours, reinforcing the downward move.

Yet that may be precisely where an opportunity lies. After liquidation waves of this kind, much of the speculative leverage leaves the market. For long-term investors, the zone around $65.000 therefore becomes particularly interesting.

If that level holds, a solid recovery could follow. If Bitcoin breaks convincingly below it, the 2026 bottom of $57.000 comes back into play.