Over $600 million in Bitcoin long positions were wiped out Thursday as the price tumbled toward $60,000. The move caught leveraged bulls off guard, forcing exchanges to liquidate positions across multiple platforms. While some traders now expect a short-term bounce toward $70,000, the broader technical setup remains firmly bearish.
The liquidation cascade
The scale of the flush is hard to ignore. More than $600 million in Bitcoin long contracts were closed out in a matter of hours, according to data from major derivatives exchanges. The cascade accelerated as the price breached $62,000, then $61,000, before briefly tapping $60,100. Open interest dropped sharply, suggesting many leveraged players were caught without enough margin.
What traders are watching
After a move this violent, a relief rally is common. Some veteran traders are now eyeing a bounce back toward $70,000 over the next few sessions. The logic: oversold conditions on short timeframes, coupled with the psychological support at $60,000, could trigger a snapback. But it's a short-term bet, not a trend change — at least not yet.
Bearish clouds remain
The technical picture above the daily chart hasn't improved. Bitcoin is still trading below its 50- and 200-day moving averages, and the weekly Relative Strength Index is pointing lower. The $60,000 level has acted as both support and resistance in recent months, and a clean break below it could open the door to the mid-$50,000 range.
For now, the market is waiting to see if $60,000 holds as support. If the bounce fails to retake $65,000 in the next day or two, the bears will likely take control again. No deadline is set, but price action over the next 48 hours should tell the story.
