Analysts: BTC's failure to hold support fuels risk-off sentiment

Risk-off sentiment is spreading across the market as Bitcoin (BTC) repeatedly fails to defend key support levels, according to analysts. The Block reported that Vincent Liu, chief investment officer at Kronos Research, attributed the decline to a combination of excessive leverage liquidations, spot ETF and institutional fund outflows, and a risk-off trend in the macro environment. Liu added that the Bitcoin capitulation indicator had recently reached its second-highest level in the past two years, suggesting that selling pressure in the market may have peaked. BTC Markets analyst Rachael Lucas noted that traders are no longer trying to catch a falling knife and are instead adopting defensive positions. This is supported by sell-offs during every rebound and a sharp decline in trading volume, she said. According to Lucas, as BTC fails to defend major support lines, traders are shifting from a buy-the-dip strategy to a wait-and-see approach.