Bitcoin’s recovery from a near-10% slide earlier this month has run out of steam, leaving long traders underwater. A Bitfinex report released this week pegs the breakeven wall at $79,000 — a level that’s now acting as stiff resistance. The stall follows a weekend deleveraging event that wiped out $766 million in Bitcoin liquidations, erasing most of the gains from May.
The $79K wall
Analysts are zeroing in on $79,000 as the key battleground. According to the Bitfinex report, that’s the average price where long traders who opened positions during the May rally would break even. With Bitcoin trading below that mark, every push higher meets selling pressure from traders looking to exit without a loss. The report describes it as a “breakeven wall” — and so far, it’s held.
Weekend deleveraging
The trouble started over the weekend. On May 23, a sharp deleveraging event hit the market, forcing $766 million in Bitcoin long positions to liquidate. That single flush erased all the gains Bitcoin had built up since the start of the month. The timing wasn’t great — the move came just as the weekly open looked poised to offer a foothold for a recovery. Instead, the selling accelerated.
Long traders under pressure
The Bitfinex report paints a grim picture for anyone betting long. “Long BTC traders are underwater,” the exchange’s analysis team noted, pointing to the $79,000 breakeven as the line in the sand. With the recovery stalling near the weekly open, those traders are stuck waiting for a breakout that hasn’t come. The report suggests the overhang of underwater positions could keep a lid on prices until the wall is either broken or washed out.
Where the recovery stands
Bitcoin fell nearly 10% from its early-May high before clawing back some ground. That recovery effort hit a wall right at the weekly open — exactly where you’d expect overhead supply to pile up. Now the market is left with a familiar question: can Bitcoin rally through $79K, or is this just a pause before another leg down? The Bitfinex report’s data suggests the path of least resistance is lower until that breakeven wall gets cleared.
