Bitcoin traders got a nasty surprise this week. Over $740 million in BTC positions were liquidated in a 24-hour stretch, with long positions accounting for more than $623 million of that total. The price briefly touched $61,300 before climbing back above $64,750 — a bounce of more than 5%.
Longs bear the brunt
The vast majority of the liquidations hit traders betting on higher prices. About 84% of the total came from long positions, a clear signal that the market's bullish momentum got blindsided. The shakeout comes as Bitcoin had been trading in a relatively tight range, making the sudden drop even more jarring for leveraged players.
The $61,700 line that held
The dip took Bitcoin right to its 200-week moving average, which sits at $61,700. That level has a history — it marked the bottom of major bear cycles in 2015, 2018, and March 2020. The fact that it held again this time is notable, though no one's calling the all-clear just yet. The quick recovery suggests buyers stepped in at that line, reinforcing its reputation as a psychological floor.
A recovery, but a reminder
By the time most traders woke up, the price was already back above $64,750. That kind of snap-back is typical after a flush of leveraged positions, but it doesn't erase the jolt. The liquidation event underscores how quickly sentiment can shift in thinly-supported markets. For now, all eyes are on whether Bitcoin can hold above the 200-week moving average in the days ahead.
