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Bitcoin faces risk of sharp drop as over 42% of supply is underwater and leveraged longs pile up.

Technical Signals
29 May 2026
AMBCrypto
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Bearish
Bitcoin faces risk of sharp drop as over 42% of supply is underwater and leveraged longs pile up.

Bitcoin has lost key support around $73,000, with over 42% of its circulating supply currently at a loss, indicating growing market weakness. Despite this, leveraged long positions continue to increase, raising the risk of a sharp liquidation-driven pullback. Institutional activity, such as BlackRock's $157 million BTC movement during a price drop, suggests capitulation rather than confidence. The combination of rising fear and elevated leverage could lead to a more severe correction than many traders anticipate.

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