Key facts
- Bitcoin price fell below $63,000, the lowest since February 24.
- Over $1.1 billion in leveraged crypto positions were liquidated in 24 hours.
Bitcoin dropped below $63,000, its lowest point since February 24, as selling pressure intensified. Over $1.1 billion in leveraged crypto positions were liquidated in 24 hours. Analysts suggest a tradable low may not appear until October, with the 200-week moving average now a key support level.
Bitcoin's price has fallen below $63,000, marking its lowest point since February 24, amid accelerated selling pressure across the cryptocurrency market. This decline has triggered the liquidation of over $1.1 billion in leveraged crypto positions within a 24-hour period. Veteran trader Peter Brandt observed that Bitcoin has reached its initial downside target at the February low but cautioned that a deeper decline or a 'terminal wash-out' is possible, suggesting a tradable low might not form until October. Technically, Bitcoin has broken below an ascending channel that had guided its price action from February through May, with its current trading below the 8-day and 18-day moving averages indicating weak short-term momentum. Immediate support is now seen near $62,000 to $63,000, with further levels at $60,000, and $58,000 to $55,000 if the current zone fails. On-chain data from CryptoQuant shows that while ETFs and Strategy have absorbed a substantial amount of Bitcoin (over 1.24 million BTC since March 2024), unusually strong selling pressure is evident. The price has touched its 200-week moving average for the first time since October 2023. Bitcoin also failed to stay above $65,500 and extended losses, trading below $64,000 and the 100 hourly simple moving average, with a low formed at $61,255. Trader Daan Crypto Trades noted that Bitcoin is testing its 200-week moving average for the first time since late 2023, a level that has historically served as support outside of the 2022 bear market. The $60,000 level is considered critical for bulls to defend. Santiment data shows social sentiment has shifted from highly bullish to bearish, moving with price rather than ahead of it. Despite significant institutional buying by ETFs and Strategy, the price has returned to previous levels, indicating strong distribution.
The breach of key support levels and the 200-week moving average, coupled with significant liquidations and bearish sentiment, suggests a potential for further downside in Bitcoin, impacting investor confidence and the broader crypto market.