Bitcoin has entered a pivotal phase after failing to sustain higher value late last year and breaking lower again in early 2026. Using IBIT as the listed proxy for Bitcoin exposure, the market has declined from the low 60s down into a major consolidation block from 2024. A combination of macroeconomic repricing, U.S. labor market data, geopolitical tensions, and more than two billion dollars in liquidations in a single session has temporarily overshadowed regulatory tailwinds and pressured risk appetite. The 35 level which corresponds to 61,638 area on Bitcoin, now represents a critical decision point. Whether buyers can defend this area will likely determine if the market balances and rebuilds value or accelerates toward deeper liquidation levels.