Is This a Good Time to Buy Bitcoin as Price Crashes to $60K on $2.59B Wipeout

Bitcoin has entered one of its most turbulent phases in recent years. Prices are plunging to $60,000 amid forced liquidations and broader selling pressure across global markets. The decline has reignited debate over whether the current sell-off represents a long-term buying opportunity or a signal of deeper downside risk.

Price Action and Liquidation Shock

At press time, Bitcoin is trading at $64,963, down 8.25% in the last 24 hours. BTC even briefly dipped as low as $60,008 and it was a steep decline of 21% over the past week. 

If BTC continues its correction, it could extend the decline toward the $54,800 support. The Relative Strength Index (RSI) reads 20 on the daily chart, deep in oversold territory, and it shows strong bearish momentum. 

Additionally, the Moving Average Convergence Divergence (MACD) indicator showed a bearish crossover on January 20, which remains intact with rising red histogram bars below the neutral level.

In just 24 hours, crypto markets saw approximately $2.59 billion in liquidations according to CoinGlass. It wiped out close to 576,369 leveraged positions since long positions accounted for $2.12 billion. Short liquidations stood at $475.79 million.

Bitcoin long liquidations are $1.09 billion, followed by Ethereum at $601.24 billion.

The derivatives market Open Interest (OI) has dropped to $95.73 billion on Friday, extending a decline since the October 7 peak of $233.50 billion. 

The long-to-short ratio is at 0.9467 over the last 24 hours, indicating more short positions compared to the long positions. 

Also Read: Is More Downside Coming for Bitcoin and Ethereum? Experts Weigh In

Broader Market Context

On the corporate front, Michael Saylor’s Strategy (MSTR) posted a $12.6 billion loss in Q4 2025 and an operating loss of $17.4 billion, causing MSTR shares to decline by 17% on Thursday, closing at approximately $106.

The sell-off unfolded alongside a wider risk-off move in traditional markets, where roughly $1 trillion in US equities was erased amid weakness in technology stocks. 

Spot Bitcoin ETFs, which previously provided consistent inflows, have turned into a source of pressure. 

Recent sessions saw over $800 million in net outflows. It signals a short-term retreat by institutional investors. 

Sentiment at Extreme Lows

The Crypto Fear and Greed Index dropped to 5, its lowest level since the indicator was launched. It firmly placed sentiment in “extreme fear” territory. 

Historically these readings have coincided with periods of intense volatility and eventual stabilization, though not necessarily immediate recoveries.

Analysts point to a leverage unwind as the primary driver of the crash, along with a stronger US dollar and expectations of tighter financial conditions. 

Outlook: Buy the Dip or Wait?

Key support lies in the $58,000-$60,000 range which must hold to stabilize the market structure. A sustained recovery will likely depend on improving ETF flows and supportive macro signals. 

Until then Bitcoin stays in a high-risk, high-volatility zone where patience may prove as important as conviction.