Bitcoin, the world's largest cryptocurrency, has been facing intense selling pressure since June 7. After previously finding support at $71,000, its price has dropped to $68,500. Currently, Bitcoin is trading at $69,404 with a market value of $1.37 trillion.

Hedge funds have significantly increased their net short positions on Bitcoin, reaching a record level. This move indicates extreme bearish expectations and potential market volatility if these positions are forced to unwind. The situation is compared to historical short squeezes like Volkswagen and GameStop, suggesting a dramatic shift could occur in the Bitcoin market.

The cryptocurrency market, including Bitcoin, has been impacted by the end of the meme stock rally. GameStop shares fell by 41% on June 7, contributing to the overall market decline. Meanwhile, the $68,500 level is critical for Bitcoin's support. If it maintains this level, it may potentially recover and see further gains. However, historical trends show that prolonged bullish phases often lead to significant downward corrections.

Analysts warn that the market's bullish trend might be losing strength, potentially exhausted, and investors may exit quickly, resulting in rapid selling and sharp price drops. As Bitcoin faces significant selling pressure, the market waits with bated breath to see if it will bounce back or continue its downward trend.