Bitcoin recovered above $61,000 on Thursday after falling to nearly $59,000 in the previous session. The move followed long liquidations and spot ETF outflows. Analysts now question whether the decline has ended or another fall could follow.
Crypto analyst Reflection warned that Bitcoin could face a rapid liquidation cascade if price falls below $59,000. The analyst cited CoinGlass data showing more than $1.6 billion in long positions clustered near $58,000. Reflection described the concentration as unusually large, although the estimate can change as traders open and close positions.
“In all my years trading, I’ve never seen this much long-side liquidity stacked in one single zone,” Reflection said. The analyst also claimed that traders who called the bottom early could face forced liquidations.
Still, liquidation heatmaps show estimated risk areas, not confirmed price targets. Bitcoin fell to about $59,100 on Wednesday, while total crypto market liquidations reached nearly $984 million. Long positions made up more than 80% of the losses.
Institutional selling has weighed on Bitcoin. US spot Bitcoin ETFs recorded about $469 million in net outflows on Wednesday, marking a fifth straight session of withdrawals. Cumulative ETF inflows fell to $52.8 billion, their lowest level since July 2025.
Meanwhile, about 7,600 BTC moved into Binance, according to CryptoQuant. The transfer was worth nearly $479 million at the time. Higher exchange inflows can increase available supply, although they do not confirm that every coin will be sold.
The pressure pushed Bitcoin below $60,000 before buyers returned, turning the former support area into a key resistance level.
CryptoQuant analyst Darkfost said annual realized profits usually fall below realized losses near the peak of bear-market capitulation. Current figures show realized profits at about $305 billion, compared with realized losses near $198 billion. The gap suggests that the market has not yet reached that past-cycle condition.
“It is precisely at that moment that capitulation reaches its bear market peak,” Darkfost said. The analyst argued that losses could rise further before Bitcoin forms a lasting bottom, though earlier cycles do not guarantee the same result.
Analyst Sykodelic also noted that only 46% of Bitcoin supply remains in profit, matching the 2022 bear-market low. Bitcoin reached that level after a 52% decline this cycle, compared with a 75% fall in 2022.
Bitcoin traded near $61,700 on Thursday after recovering from the low. The immediate support zone sits between $59,000 and $59,300. A sustained break below that range could expose $57,000, followed by the two-year low area near $54,000. The realized price sits slightly above $53,000, another level watched during deep market declines.
On the upside, Bitcoin must reclaim $63,000 to weaken the current bearish structure. Traders are also watching the US Personal Consumption Expenditures inflation report on June 26.
A hotter reading could raise interest-rate concerns and pressure risk assets. Softer data could support a recovery, although ETF flows, exchange inflows and leverage levels may remain the main short-term drivers.
Also Read: CLARITY Act: What the Senate’s 15-9 Vote Means for Crypto