$124 million long positions liquidated as Bitcoin falls below $61K

The market is under bearish control, with Bitcoin falling below the $61,000 threshold. This decline has resulted in nearly $124 million worth of BTC long positions being liquidated in the past 24 hours. Across all cryptocurrencies, bullish derivatives traders have faced significant losses, with $260 million wiped out in the same period.

In contrast, derivatives traders who took short positions experienced relatively minor losses, with short liquidations amounting to only $25 million.

A significant portion of these long liquidations occurred following an announcement from the Mt. Gox trustee, indicating that creditors will start receiving their BTC and BTC Cash next week. In the last four hours alone, long liquidations across all assets have reached $110 million.

BTC struggles to rebound after 15% Monthly Drop

Presently, BTC has descended below the $62,000 threshold, triggering technical alarms among traders. They are particularly focusing on the critical support level near $61,500. In the past 30 days, Bitcoin has dropped by almost 15%.

Analysts, such as Markus Thielen from 10X Research, have highlighted a potential double top formation in Bitcoin’s chart, a technical indicator signaling a trend reversal.

The trend often leads to increased selling pressure as investors react to breaches of key support levels. This technical analysis has fostered a cautious sentiment, affecting market dynamics and pushing Bitcoin’s price closer to the $60,000 mark.

Market analysts have warned of a potential further decline to $57,000 by month-end, citing upcoming macroeconomic events and options expirations. These events, including critical data releases and Federal Reserve announcements, are expected to heighten market volatility.

Bitcoin enters the oversold zone

According to data from Santiment, Bitcoin’s relative strength index (RSI) currently stands at 35, marking three consecutive weeks of decline. This oversold condition suggests the possibility of a forthcoming price rally.

Although the RSI is declining, the massive surge in Bitcoin’s daily trading volume could hint at high price volatility.

Also Read: Bitcoin’s June 2024 – How low can BTC go? 

Data from the market intelligence platform shows that the BTC exchange inflow plunged from 18,726 coins to 14,547 coins over the past 24 hours. Additionally, the BTC exchange outflow dropped from 20,344 tokens to 14,648 tokens in the same timeframe.

The movements show that investors might be trying to accumulate Bitcoin at this price point, seeing the $62,000 mark as a local bottom for the crypto.

Mt. Gox set to commence repayments in July

Defunct BTC exchange Mt. Gox said Monday it would start to distribute assets stolen from clients in a 2014 hack in the first week of July, years after continually moving deadlines. The BTC price has dropped significantly since the announcement.

Approximately 127,000 Mt. Gox creditors are owed more than $9.4 billion worth of Bitcoin.

Also Read: Ethereum and Bitcoin transaction fees tank amid high network activity and market turbulence

According to Eric Balchunas, a senior ETF analyst at Bloomberg, this development could introduce significant selling pressure into the market. In a June 24th post on X, he remarked:

That’s like over half of all the ETF inflows being negated in one shot. Damn.

Eric Balchunas

Further exacerbating the impending selling pressure, a German government-labeled wallet moved nearly 6,500 BTC on June 19th. This wallet has held almost 50,000 BTC since February 2024, valued at over $3 billion at Bitcoin’s current price of above $61,000.

Cryptopolitan reporting by Florence Muchai