Bitcoin took a sharp hit Wednesday, dropping to $65,000 and setting off a cascade of forced selling across the crypto market. Over $1.8 billion in leveraged positions were liquidated in the span of a few hours, according to data from major tracking platforms. The move has traders now bracing for a potential test of the $60,000 support zone.
The $1.8 billion cascade
The liquidation event hit both long and short positions, though longs bore the brunt. More than $1.5 billion in bullish bets were wiped out as Bitcoin slid through key levels. Ethereum and other altcoins followed, with double-digit percentage drops on some names. The sheer size of the liquidations — among the largest single-day figures this year — suggests heavy leverage built up during the recent rally was suddenly unwound.
Liquidations happen when exchange margin calls force the closure of overleveraged trades. When the market moves fast, they compound the selling pressure. That's exactly what played out Wednesday morning.
Testing $60,000
With $65,000 broken, the next big level is $60,000. That zone has acted as both resistance and support over the past few months. A break below it could open the door to a deeper correction, but a bounce from there would signal the dip is being bought.
Volume spiked during the sell-off, which often points to panic selling — but also to aggressive accumulation by buyers who see the drop as an entry point. The coming sessions will tell which side has the upper hand.
Traders are watching the order books closely. A cluster of buy orders sits near $60,000 on Binance and Coinbase. If those get eaten through quickly, the next stop could be $55,000. If they hold, the market might find a floor and begin to recover.
No single catalyst has been identified for the drop. Some point to profit-taking after Bitcoin's run toward $70,000. Others note macro jitters ahead of U.S. jobs data due Friday. But in the crypto market, a big move often feeds on itself — and Wednesday was no exception.
