Woofun AI reports that Bitcoin has traded between $59,000 and $60,000 for five consecutive days within a downtrend. Analysts highlight that downward-trending 50-day and 200-day moving averages suggest bearish conditions, with a breakdown potentially targeting the $40,000 support level.

On-chain metrics show weak demand, with active addresses and transaction volumes at recent lows. CryptoQuant analyst Darkfost noted long-term holders may be selling at a loss.

Meanwhile, Strategy’s stock decline and potential $1 billion BTC sale, combined with a strengthening US dollar and capital flows to AI assets, exert pressure on BTC, which is tracking for a 13% Q2 decline.