Bitcoin tumbles to $60K then rebounds to mid-$60Ks amid massive $2.6B liquidations
Bitcoin plunged intraday to about $60,000 — its largest single-day drop since the FTX collapse era — before recovering to roughly $66–67K. The move triggered heavy forced liquidations: Coinglass reported more than $2.6 billion of crypto positions closed within 24 hours, with Bitcoin derivatives accounting for the largest share. Earlier reports placed liquidations near $700 million during an initial panic, suggesting the sell-off widened as exchanges and data providers updated totals. Major altcoins fell sharply, with Ethereum testing $1,900–$1,800 support, Solana near $67–$80, and XRP around $1.13–$1.40. Analysts attribute the volatility mainly to technical factors: record futures open interest, overcrowded leveraged long positions and cascading forced unwinds rather than a single fundamental catalyst. Market sentiment swung to extreme fear (CoinMarketCap Fear & Greed Index ~5). Traders are watching key technical levels: a sustained break above $70,000 (bull confirmation) and $73,000 (further upside) versus renewed weakness toward $60,000 and the risk of deeper drawdowns possibly toward $50,000 if selling persists. Short-term implications include elevated volatility, continued liquidation risk and potential short squeezes; longer-term direction depends on whether leverage is digested, how buyers defend the $70K area, and broader macro conditions.
Bearish
The immediate price impact is bearish. A rapid intraday drop to ~$60K followed by heavy forced liquidations — reported between ~$700M in early tallies and over $2.6B across 24 hours — increases near-term downside risk for BTC. High futures open interest and crowded leveraged long positions amplify the chance of further cascade selling if a fresh trigger appears or liquidity thins. Although the rebound into the mid-$60Ks proves there is buying interest and allows for short squeezes, the persistence of leverage and extreme fear sentiment (Fear & Greed ~5) means volatility remains elevated and downside scenarios (retests of $60K or deeper toward $50K) are plausible until leverage is meaningfully reduced or BTC decisively regains and holds levels above $70K–$73K. For traders, this suggests prioritizing risk management: reduce size on highly leveraged positions, watch liquidation flows and open interest, and use tight stops or hedges while monitoring whether buyers defend the $70K area.