Bitcoin rejected at $68K as bearish pressure persists while protocol reports 850M tokens sold
Bitcoin’s latest attempt to reclaim higher ground stalled near the $68,000–$70,000 region, reinforcing caution among traders who argue that the broader bearish structure remains intact. While short-term rebounds have generated optimism, analysts note that key technical levels continue to act as resistance. At the same time, development activity within decentralized finance persists, with Mutuum Finance reporting ongoing protocol progress and more than 850 million tokens sold during its fundraising phase.
Bitcoin faces resistance as bear market debate continues
Bitcoin climbed toward $70,000 earlier this week, briefly touching $70,040 before losing momentum and sliding back toward the $67,000 range. The move brought price into contact with two historically significant levels: the 200-week exponential moving average (EMA) and the previous 2021 cycle high. However, bulls failed to secure a decisive reclaim of either level, with the 200-week EMA now acting as overhead resistance.
Market analysts noted that liquidity clustered below $69,000 was swept during the rally, after which buying pressure faded. The rejection near prior cycle highs has reinforced the view that Bitcoin remains within a broader corrective structure. Traders monitoring higher time frames emphasized that a sustained break and hold above these long-term indicators would be required to signal a structural shift.
Some analysts cautioned against declaring the bear market over prematurely. Historically, Bitcoin bear cycles have lasted at least 12 months, with the shortest previous downturn extending roughly 365 days. By comparison, the current cycle is estimated to be only around 140 days in duration. In prior cycles, peak-to-trough drawdowns have approached 80%, while the recent decline from the October 2025 all-time high of $126,200 to February lows represents a drawdown of approximately 53%.
Longer-term charts also show limited confirmation of a macro reversal, with monthly and weekly indicators yet to display strong bullish divergence. As a result, traders continue to approach price action cautiously, watching whether Bitcoin can reclaim the 200-week EMA and convert it back into support before reassessing the broader trend.
Mutuum Finance (MUTM)
Currently priced at $0.04, Mutuum Finance has sold over 850 million tokens to more than 19,000 holders, raising approximately $20.6 million during its sale phase. Another milestone achieved is the protocol surpassing $150 million in testnet total value locked (TVL), reflecting user participation within the beta environment.
At this stage, the Mutuum Finance protocol is running on the Sepolia testnet. Users are able to lend and borrow crypto assets in a testnet setting before the platform goes live on mainnet. Participants mint supported assets such as ETH, USDT, LINK, or WBTC and can supply them into the protocol to either lend or borrow using Sepolia-based tokens.
Lending markets
The protocol is designed to operate through two complementary markets. The first is Peer-to-Contract (P2C), where users can lend and borrow major and widely used crypto assets such as ETH or USDT. In this market, lenders earn interest based on an APY percentage determined by pool utilization.
The second market is Peer-to-Peer (P2P), which allows investors to lend more volatile crypto assets such as PEPE or DOGE. The P2P structure gives participants the ability to create customized agreements, offering flexibility in setting terms between lenders and borrowers.
In both markets, users who deposit assets into the protocol receive mtTokens in return.
What are mtTokens?
mtTokens represent proof of deposit for each user. They track the deposited amount and accumulate yield over time based on borrowing activity within the pool. For example, a user who deposits USDT receives mtUSDT, reflecting their share of the liquidity pool.
Users holding mtTokens are eligible to stake them within the protocol’s safety module. By staking mtTokens, participants will receive dividends distributed in MUTM tokens, linking protocol activity with token-based incentives.
In the current testnet environment, users are already able to test how the staking mechanism works within the V1 protocol. Alongside staking and mtTokens, the team has outlined several core features integrated into the first version of the platform.
One of the central components is the liquidity pool system, where deposited assets are pooled and made available for borrowers. When a user borrows from the protocol, a corresponding debt token is minted. These debt tokens represent the borrowed amount and track the principal plus accrued interest over time.
Another key feature is the Stability Factor, a risk indicator that measures how secure a borrowing position is by comparing the value of collateral against the outstanding debt. A higher Stability Factor reflects a stronger collateral buffer, while a lower value signals increased liquidation risk.
The protocol also includes an automated liquidator bot. This mechanism continuously monitors borrowing positions and triggers liquidation if collateral values fall below required thresholds. The system is designed to help maintain solvency and reduce systemic risk within the lending markets.
Recently, the team introduced a new feature to the protocol: Safe Mode Borrow Presets. This update simplifies the borrowing process by allowing users to select predefined risk levels when opening a position. The presets typically include options such as Safe, Balanced, and Aggressive. Under the Safe preset, the system targets a higher collateral buffer, reducing liquidation risk. The Balanced option offers moderate capital efficiency, while the Aggressive preset allows borrowing closer to the maximum loan-to-value limit, increasing potential capital usage but also increasing exposure to volatility.
Before launching the V1 protocol on the Sepolia testnet, the team completed a security audit of the lending and borrowing smart contracts conducted by Halborn. According to the project’s disclosures, the review was finalized prior to the public testnet release, forming part of the protocol’s preparation process ahead of mainnet deployment.
Bitcoin’s rejection near the $68,000 level underscores continued bearish pressure, with analysts cautioning that the broader downtrend may not yet be over based on historical cycle patterns. While large-cap assets face uncertainty, Mutuum Finance continues reporting token sale milestones, testnet growth, and protocol upgrades, highlighting ongoing development activity despite wider market volatility.
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