Bitcoin Price Analysis: BTC Bulls Face Challenges in Holding $60K Amid Surge in Liquidations
Bitcoin experienced a brief decline, falling below $59,000 late Thursday as selling pressures swept the cryptocurrency market.
Summary
- The decline beneath $59K was influenced by ETF outflows and substantial long liquidations, heightening market volatility.
- Short-term holders have been transferring BTC to exchanges at a loss, raising alarms about capitulation and seller exhaustion.
- Technical indicators are showing weakness, with RSI approaching oversold levels and $59K-$60K identified as key support zones.
This shift forced Bitcoin to an intraday low around $58,189 before a slight recovery towards the $60,000 threshold.
Market analysis from crypto.news suggests Bitcoin is still under downward pressure after dropping below the $60,000 mark during the recent selloff. Traders are now assessing whether the $59,000-$60,000 range can revert to being a support level.
The downturn coincided with declines in major cryptocurrencies. Ether dropped to around $1,500, while altcoins faced steeper losses due to forced liquidations in leveraged bets. This downturn followed several days of reduced ETF interest and a lack of risk appetite in crypto markets.
Previously, Bitcoin had climbed back towards $62,000 following a $459 million ETF outflow, but sellers remained in control. That rebound has now faded, leaving BTC near the critical support level that has been monitored closely since June.
Impact of Bitcoin ETF outflows and liquidations
On Thursday, U.S. spot Bitcoin ETFs saw a loss of $696 million, as reported by SoSoValue ETF data. This marks a continuation of six consecutive days of net outflows. U.S. spot Ether ETFs also recorded an $81.9 million loss, indicating their sixth day of redemptions.
The selling pressure from Bitcoin ETFs was broad-based. BlackRock’s IBIT, the largest fund, accounted for approximately $63 million of the outflows. Fidelity’s FBTC witnessed a loss of $3.5 million, while Grayscale saw around $23 million exit. No funds noted significant inflows during this timeframe.
Traders utilizing leverage also faced major liquidations. According to CoinGlass, over $1 billion in crypto positions were liquidated within a 24-hour window. Long traders were significantly impacted, with nearly $842 million in long positions being closed.
Bitcoin comprised the majority of the liquidation wave, leading to about $489 million in forced closures, followed by Ether at around $295 million. The largest single liquidation involved a $38.05 million BTC-USD position on Hyperliquid, illustrating how swiftly large leveraged positions were unwound.
Bitcoin traders eye the $59K-$60K range
Crypto trader Daan Crypto Trades pointed out that Bitcoin has absorbed considerable liquidity around the $60,000 level. In a post on X, he noted that the primary liquidity cluster is now positioned near $67,000, aligned with June’s highs.
He highlighted the significance of the $59,000-$60,000 range. If Bitcoin can establish stability in this area and buyers defend it, the market may stabilize. However, if BTC continues to approach this support again, it could signal another downward trend on longer timeframes.
Market analyst BATMAN remarked that Bitcoin is nearing a possible weekly death cross. He indicated that the last death cross did not pinpoint the exact bottom but initiated a prolonged consolidation phase before the eventual cycle low.
EGRAG CRYPTO also pointed out a bearish crossover between the 13-week and 33-week moving averages. He suggested that a two-week close above $74,000 would undermine this bearish setup. Until then, he indicated that the cycle-bottom window remains open, with potential downside targets around $47,000, $43,000, and $37,000.
Technical indicators remain shaky
Short-term indicators for Bitcoin show weak momentum despite a minor recovery. The MACD registered a slight bullish crossover, with its histogram a little positive at 16.31. The MACD line is around -2,269.45, just above the signal line at -2,285.76.
This setup suggests that the downside momentum has lessened. However, both lines remain well below the zero threshold, indicating a weak signal and that the recovery has yet to alter the broader trend.
The RSI is around 32.98, below its average of about 37.77, placing Bitcoin close to oversold territory. Buyers have yet to regain strength, as the RSI remains significantly under the neutral 50 mark.
Volume is approximately 12K, with heavier selling during June’s decline. The latest candle points to a small uptick, but the market lacks strong validation. Bitcoin must reclaim the $62,800-$65,000 range to signal that buyers are regaining short-term control.
Stress among short-term holders
Analyst Amr Taha from CryptoQuant highlighted that Bitcoin’s short-term holder market cap fell to $237.7 billion on June 26, the lowest level since October 2, 2024, when it was around $239.7 billion. This drop indicates that many recent buyers are currently facing unrealized losses.
He also observed that the Crypto Fear & Greed Index dropped to 12 on June 25, placing the market in an Extreme Fear state as Bitcoin traded near $59,700. Although this reading isn’t the yearly low, it reflects heightened stress among recent buyers at the lower BTC price.
Taha reported that short-term holders sent about 50,000 BTC to exchanges at a loss within a 24-hour period. Binance received roughly 9,500 BTC from this group, marking its highest inflow since early June. While transfers to exchanges don’t guarantee immediate selling, they signal that more BTC is available on trading platforms.
As previously mentioned, Bitcoin saw significant liquidations after dipping below the $60,000 level. Earlier analyses from crypto.news highlighted how the $60,000 support had been compromised following a bearish chart breakdown.
Despite recent macro developments that could mitigate panic, they have yet to effectively change chart dynamics. An interim agreement between the U.S. and Iran grants UN nuclear inspectors access to Iran, although specific aspects remain contentious.
For Bitcoin, the immediate task is clear: uphold the $59,000-$60,000 support zone or risk another downward movement.
Disclosure: This article does not serve as financial advice. The information and materials provided on this page are strictly for educational purposes.