Key facts
- Bitcoin price fell below $63,000, the lowest point since February 24.
- Over $1.1 billion in leveraged crypto positions were liquidated in 24 hours.
- Bitcoin broke below its ascending channel, indicating weak momentum.
Bitcoin dropped below $63,000, its lowest since February 24, triggering over $1.1 billion in leveraged liquidations. Veteran trader Peter Brandt suggests a tradable low might not emerge until October, citing technical breakdowns and weak momentum. Immediate support is seen between $62,000 and $63,000.
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 average cost basis for Bitcoin investors is around $53,000, and the price has touched its 200-week moving average for the first time since October 2023.
The significant drop in Bitcoin's price and the potential for further declines could impact investor sentiment and the broader cryptocurrency market, especially given the large liquidations and technical breakdowns observed.