Bitcoin Slides Below $61K as Glassnode Flags 8M BTC Underwater
Bitcoin reversed its 24-hour rally as escalating Middle East tensions triggered a risk-off move. Bitcoin briefly dipped below $61,000, hitting an intraday low around $60,718 before rebounding to about $61,700. The move left Bitcoin down ~2.9% on the day and wiped roughly $30B in market cap.
Derivatives activity amplified the fall. The price drop triggered about $104M in liquidations of long positions and nearly $27M in short liquidations, with total crypto liquidations rising to ~$467.5M. On-chain analytics firm Glassnode reported a deteriorating positioning backdrop: about 8 million Bitcoin are now “underwater” (purchased or last moved at prices above current spot), reversing earlier profit trends.
The article links the sell-off timing to US-Iran-related geopolitical headlines and heightened airspace/panic chatter, which coincided with Bitcoin losing more than $2,000 within hours. It also notes that this drawdown pressured spot market cost bases.
Overall, Bitcoin’s reversal highlights how fast macro/geopolitical shocks can translate into leverage unwinds and worsening on-chain sentiment, raising near-term volatility risk for traders watching $61K-$62K support/resistance.
Bearish
This news is bearish for near-term trading because it combines (1) a clear BTC price rejection around the $61K-$62K area with (2) heavy derivatives liquidation flows and (3) worsening on-chain positioning. When geopolitical headlines drive sudden risk-off moves, leverage tends to unwind quickly—similar to prior episodes where macro shocks led to rapid long-liquidation cascades and then a choppy, mean-reversion trading range.
Key trader signals here are the ~$467.5M total liquidations (with longs dominating) and Glassnode’s report that ~8M BTC are underwater. That combination often reduces dip-buying appetite: spot holders may be more likely to sell rallies or fail to add, while leveraged traders need time to rebalance. In the short term, this raises the probability of further volatility spikes and stop-hunt behavior around round levels like $61,000 and $62,000. In the long term, an “underwater supply” rise can pressure recovery attempts until price regains enough cost bases, though rebounds are still possible if liquidations exhaust and new buyers step in.