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- ZCash lost over 20% as crypto liquidations exceeded $900 million.
- Bitcoin fell to a six-week low, increasing bearish pressure across the market.
- Traders are closely watching ZEC’s $486 support level for signs of recovery.
The crypto market faced another brutal sell-off this week as more than $900 million in derivatives positions were wiped out across exchanges. While several altcoins struggled to recover, ZCash (ZEC) remained under pressure, extending its decline as Bitcoin slipped to its lowest level in six weeks.
ZEC has fallen more than 20% since May 25, reversing much of the momentum from its recent breakout rally. The broader market downturn, combined with rising liquidations in leveraged trading, has pushed traders into defensive positioning.
Bitcoin Slide Fuels Market Panic
Bitcoin dropped below key support levels during the latest correction, briefly touching $72,728 before recovering slightly above $73,000. The move added to BTC’s weekly losses and intensified pressure across altcoins and derivatives markets.
According to CoinGlass data, long liquidations surged sharply as leveraged traders were forced out of positions. Futures sentiment also weakened, with sell-side dominance increasing as traders reduced exposure amid fears of deeper downside.
Despite the bearish environment, some large investors continue betting on a recovery. Crypto whale Garret Jin reportedly expanded his Bitcoin long position to 1,268 BTC, valued at roughly $94 million, even as unrealized losses mounted.
Still, futures indicators suggest caution remains dominant. Analysts noted that whale activity in derivatives markets remains high, but overall order size has dropped significantly compared to earlier bullish phases.
ZCash Holds Key Support Zone
For ZCash, the recent pullback has pushed price action back into a previously broken trading range. However, market structure has not fully turned bearish yet.
Technical indicators show ZEC approaching an important Fibonacci retracement area near $530. Momentum indicators also suggest the asset may be heavily oversold after the rapid decline.
At the same time, selling pressure remains visible. Accumulation and distribution metrics indicate sellers have controlled the market over the past week, while liquidation heatmaps show dense liquidation zones between $520 and $470.
Those levels could attract further volatility in the short term.
Is ZEC Still a Buying Opportunity?
Some traders still view the current correction as a potential buying setup rather than a full trend reversal. Analysts continue to watch the $486 support level closely, which remains a key invalidation point for bullish market structure.
Also Read: Zcash Foundation Holds $36.7M—Is This the Most Conservative Crypto Treasury in 2026?
If Bitcoin stabilizes and broader market sentiment improves, ZCash could attempt another rebound. However, continued weakness in BTC and derivatives markets may drag altcoins lower before any sustained recovery begins.
For now, traders appear to be waiting for confirmation that selling pressure has cooled before re-entering riskier positions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
