Bitcoin Price Faces Fresh Pressure as Wendy O Warns of Deeper Correction Risk

Crypto analyst Wendy O has raised fresh concerns about Bitcoin’s market structure after the asset slipped below key technical levels amid mounting ETF outflows and record liquidations. During a recent market analysis, O highlighted that the combination of capital flight from spot Bitcoin ETFs and forced deleveraging could trigger a more severe downturn than previously expected.

Technical Breakdown: The 200-Week EMA Becomes Critical

At the time of analysis, Bitcoin was trading near $77,000, with O pinpointing a decisive support level around $68,000—aligned with the 200-week exponential moving average. As of now, Bitcoin trades near $68,970 with a 24-hour gain of 3.78%, suggesting some stabilization, though O warned that a breakdown below this technical floor would be “absolutely brutal.”

If Bitcoin decisively closes below the 200-week EMA, O cautioned the market could mirror conditions from the 2022-2023 bear cycle, when BTC traded below this key average for an extended period. Such a break would open the door to further downside toward the $55,000 region for more bearish scenarios.

Liquidation Cascade & ETF Capital Flight

Over the past 24 hours, roughly $1.5 to $1.6 billion in leveraged crypto positions were liquidated—one of the most severe single-day wipeouts in industry history. The damage was concentrated among over-leveraged long positions, particularly in Ethereum, where traders betting on upside were caught off-guard by the sharp reversal.

Equally troubling is the sudden reversal in spot Bitcoin ETF flows. Once promoted as a stabilizing force for Bitcoin adoption, these products have become sources of concern. According to figures Wendy O cited, the funds have experienced approximately $1.6 billion in net withdrawals this month alone, with roughly $6 billion exiting U.S.-listed spot products over the past three months. Since early 2026, ETFs have reportedly seen an exodus of approximately 4,500 to 4,600 BTC—a stark contrast to the tens of thousands of Bitcoin that flowed in during the equivalent period a year prior.

Altcoin Stress & Systemic Risk Signals

Altcoin weakness provides another warning signal. Ethereum currently trades near $2,060, approaching key support around $2,200 and potentially testing $1,500 if conditions deteriorate further. Solana, trading near $85, and XRP, currently at $1.42, have also shown notable weakness, raising questions about broader market health.

O flagged MicroStrategy as a potential flashpoint. The company’s aggressive debt-financed Bitcoin accumulation strategy could become problematic if prices decline sharply. While she stopped short of predicting forced liquidation, O suggested that a significant price decline could create knock-on effects for Bitcoin derivatives and related markets.

Beyond price action, newly surfaced emails (E-files) containing references to Ripple and Stellar have sparked discussion within the sector. O emphasized that while the material raises historical competitive and funding tensions, there are no explicit criminal allegations against these teams—a distinction she urged viewers to maintain as AI-generated content and social media speculation blur lines between reputational concern and documented wrongdoing.

Market Outlook & Strategy Recommendations

Wendy O expects Bitcoin to consolidate between $74,000 and $80,000 in the near term, with a meaningful risk of testing the $68,000 level and potentially lower support in the $55,000 zone. Rather than pursuing high-leverage trades during this volatile period, O advocated for dollar-cost averaging as a disciplined approach to navigating uncertainty.

She stressed that “most people think they’ll become expert traders when entering crypto—that’s simply not how it works.” Instead, O positioned current market conditions as a buying window for long-term investors who can tolerate volatility and resist the temptation to chase leverage during periods of regulatory and macro stress.

The combination of ETF capital outflows, systemic liquidations, and elevated risk from overleveraged positions suggests the market has entered a new correction phase. For traders and investors, Wendy O’s message was clear: patience and methodical accumulation trump speculation in an environment where uncertainty remains elevated.