Bitcoin's Push Toward $60K Sparks Massive Liquidation Event

Bitcoin is trading at $63,248.53 at press time, with a decline of 0.97% in the last 24 hours. BTC rebounded today from yesterday’s low of $61,310, which was its lowest level since February. The recent fall came as a result of heavy selling pressure, which caused heavy liquidations. Institutional weakness was also one of the key reasons for the sell-off.

Long Traders Face Heavy Losses

Recently, CoinGlass data shows that the total crypto liquidations have reached the $1.1 billion mark in 24 hours. Most of the loss was suffered by long traders, as they had made losses amounting to almost $945 million.

Liquidations take place when leveraged positions are forcibly closed when prices go against traders. Bitcoin's price fell to breach its major support levels, leading to automatic selling of crypto assets, which further intensified the downward trend in the entire cryptocurrency ecosystem.

Altcoins also suffered. Ethereum moved below $1,800 and other major digital assets, including Solana and XRP, also suffered heavy losses. XRP also set new lows for the year in the same trading session.

Why Bitcoin is Falling

The market decline intensified after Strategy disclosed its first Bitcoin sale in over 4 years on Monday. The company sold 32 BTC for approximately $2.5 million to fund preferred stock dividend distributions, weighing on market sentiment.

The company's Bitcoin position is now facing its largest-ever unrealized loss, estimated at around $10.8 billion, according to a Thursday X post by The Kobeissi Letter. The post estimates that after six years of Bitcoin accumulation, Strategy is currently down roughly 17% on its aggregate position.

Also, Bitcoin Exchange Traded Funds (ETFs) extend streaks of 14 days of outflows, aligning with the recent downturn. SoSoValue data show BTC ETFs recorded $396.60 million in outflows on Thursday

and investors cut spot Bitcoin ETF exposure by nearly 52,000 BTC in Q1. 

Macroeconomic uncertainty was also a factor, as investors waited for crucial US jobs data. The Crypto Fear & Greed Index reached the “Extreme Fear” zone.

Also Read: Why Bitcoin is Becoming a Strategic Asset for Institutions

Technical Structure

BTC extends its six-day bearish phase after losing the former rising trendline that now acts as resistance near $71,675.  The BTC price remains far below the 50-, 100-, and 200-day Exponential Moving Averages (EMAs), which suggests a bearish outlook.  

The Relative Strength Index (RSI) is deeply oversold at 17.37 on the daily chart and the Moving Average Convergence Divergence (MACD) extends further into negative territory. 

On the downside, the key support is at $60,000. A decisive break below this base would open the door to a deeper slide. On the upside, initial resistance is seen at $65,000, followed by the uptrend trendline around $71,675

FAQs:

1. Why did Bitcoin fall below $63,000?

Bitcoin declined given a combination of heavy liquidations, continued spot Bitcoin ETF outflows, macroeconomic uncertainty, and weakening market sentiment. The sell-off intensified after key support levels were breached, triggering automatic liquidations.

2. What is a crypto liquidation event?

A liquidation occurs when leveraged trading positions are forcibly closed as traders can no longer meet margin requirements. Large liquidation events often accelerate price declines as forced selling adds further pressure to the market.

3. Why are Bitcoin ETF outflows important?

Spot Bitcoin ETFs provide a measure of institutional demand for Bitcoin. Sustained outflows suggest investors are reducing exposure, which can weaken market sentiment and increase selling pressure on the cryptocurrency.

4. What are the key Bitcoin price levels to watch?

The major support level is currently around $60,000, while immediate resistance is near $65,000. A break below support could trigger further downside, while reclaiming resistance may improve short-term sentiment.

5. Is the current Bitcoin dip a buying opportunity?

Some investors view the correction as a chance to accumulate Bitcoin at lower prices, especially given its long-term track record. However, elevated volatility and weak technical indicators suggest investors should remain cautious and manage risk carefully.