Bitcoin risks deeper correction as $62K support cracks amid liquidations
Bitcoin (BTC) is sliding toward a key support band as options-expiry volatility, long liquidations, and renewed concerns over Strategy’s potential Bitcoin sales weigh on sentiment. BTC is down about 3% over 24 hours, hitting an intraday low near $62,300.
Derivatives data is central to the move. Nearly $136M in BTC positions were liquidated in 24 hours, with long traders accounting for roughly $122M of losses. The forced unwind accelerated selling after BTC broke below $63,000. Separately, around $2.13B in Bitcoin and Ethereum options expired, adding to intraday pressure.
Traders are watching the $61,000–$62,000 zone closely. Technicals suggest BTC is testing major support: on the 4-hour chart, price sits around the 78.6% Fibonacci retracement near $62,410. Momentum remains weak with 4-hour RSI near 35 and MACD below its signal line. On the daily chart, RSI is around 34, and the Aroon indicator stays bearish, keeping the downtrend in control unless BTC reclaims nearby resistance.
A break below $61K–$62K could expose the June low near $59K and strengthen the case for a deeper correction. On the upside, bulls may need to reclaim overhead levels around $64,950 (61.8% Fib) and roughly $66,700, where liquidation clusters could cap rallies.
Macro factors are also supportive of risk-off moves, including “higher for longer” rate expectations and a stronger US dollar. Mining stress is another headwind: BTC has reportedly traded below estimated network production cost (~$78K) for five straight months, pressuring some operators to sell to fund expenses.
Bearish
The news flow is net bearish for BTC because it combines (1) structurally bearish positioning dynamics (large long liquidations) with (2) a technically sensitive support test ($61K–$62K) and (3) weak momentum indicators. When BTC breaks a support zone shortly after a sizeable options-expiry and liquidation wave, similar past episodes have often produced sharp downside follow-through before a stabilization bounce—unless bulls quickly reclaim overhead resistance.
In the short term, traders are likely to use the $61K–$62K band as a trigger: failure keeps liquidation-related selling pressure active and increases odds of an extension toward ~$59K. At the same time, overhead liquidity clusters near $64,950 and ~$66,700 raise the probability of “relief rallies” getting sold.
In the medium/long term, macro conditions (higher-for-longer rates and a stronger USD) and mining cost stress can sustain selling pressure, making it harder for BTC to regain trend. However, if BTC successfully holds $61K–$62K and then recaptures key resistance levels, the liquidation-driven move could transition into a mean-reversion rebound. Overall, given the current confluence of liquidation + weak momentum + untested support, the base case remains bearish.