Bitcoin slipped below the $70,000 threshold for the first time in two months, trading near $69,400 after shedding 4.45% of its value within 24 hours. This decline leaves the broader cryptocurrency sector exposed ahead of a critical week of U.S. economic data releases that will likely dictate the trajectory for risk assets. Ether followed the downward trend, dropping 0.6% to $1,970, while the CoinDesk 20 index retreated 3.2% over the same period, signaling a lack of immediate support in the near-term market setup.

Spot bitcoin ETFs recorded their 11th consecutive day of net outflows, compounding the bearish pressure.

Concurrently, Strategy (MSTR), the largest corporate holder of bitcoin, disclosed the sale of 32 BTC for $2.5 million. Although this volume is negligible relative to Strategy's total holdings, the transaction carried symbolic weight, triggering a price drop immediately after the filing became public.

However, market participants are increasingly questioning whether this corporate divestment is the primary catalyst for the broader correction.

Pierre Rochard, a bitcoin researcher and board member at Strive (ASST), argued on X that Strategy selling a few coins is not causing the crash. Woofun AI notes that Rochard identifies a massive parabolic spike in AI-related equities as the true driver, effectively vacuuming up excess liquidity across multiples of bitcoin's market cap. This liquidity drain suggests that capital is rotating aggressively into artificial intelligence sectors, leaving less available for digital assets regardless of their fundamental strength.

Rochard further emphasized that a healthy labor market and rising energy prices have eliminated sentiment for dovish rate cuts, even as bitcoin's fundamentals remain robust. The upcoming U.S. jobs report on Friday stands as the next major catalyst; a strong print could keep rate-cut hopes subdued and intensify pressure on crypto, whereas softer data might enable bitcoin to reclaim levels above $70,000. Woofun AI data shows that the market is currently pricing in a high degree of sensitivity to these macroeconomic indicators.

On the technical front, the weekly chart indicates bitcoin is approaching a key confluence support zone. This level combines the 0.618 Fibonacci retracement near $69,000 with the long-term ascending trendline originating from the 2022 lows. The Relative Strength Index (RSI) remains near 39, showing no bullish divergence yet, which means there is no confirmation of a bottom from the momentum indicator at this stage.

For the immediate future, the price action represents a purely structural level test rather than a confirmed reversal or breakdown. Woofun AI analysis suggests that until the RSI provides a clear signal or macroeconomic data shifts the liquidity narrative, the asset will likely oscillate around these critical technical boundaries. The interplay between AI sector dominance and traditional economic data will define the next phase of volatility.