Bitcoin (BTC) faced a significant liquidation of more than $122 million in leveraged long positions as its price dipped below the $61,000 threshold, heightening the risk of dropping further below the critical $60,000 level.
In the 24 hours leading up to 1:25 pm UTC on June 24, over $122 million worth of leveraged long Bitcoin (BTC) positions were liquidated, as reported by CoinGlass data. This was triggered by a sudden 5% intraday drop in Bitcoin’s price, briefly dipping below $61,000 at 1:25 pm UTC. On the weekly chart, the cryptocurrency has seen a decline of over 7%, according to CoinMarketCap data.
Leveraged positions can indicate crucial price levels for an asset. CoinGlass suggests that a potential move below the $60,500 mark could result in the liquidation of over $180 million in leveraged long positions across various exchanges.
The recent price drop follows an announcement by the collapsed crypto exchange Mt. Gox, stating that it would begin processing repayments for its users. Mt. Gox creditors are owed more than $9.4 billion in Bitcoin, with approximately 127,000 individuals waiting over a decade to access their funds. This could lead to significant selling pressure in the market, according to Eric Balchunas, a senior ETF analyst at Bloomberg.
Additionally, a German government-labeled wallet recently moved nearly 6,500 BTC on June 19, adding to the potential selling pressure. The wallet has held around 50,000 BTC since February 2024, valued at over $3 billion at Bitcoin’s current price above $61,000.
Following the drop below $61,000, Bitcoin’s price has become the most oversold since it was trading at $26,000. The Relative Strength Index (RSI) on the daily chart has hit 28, indicating that BTC is in an “oversold” condition. The last time Bitcoin’s RSI was below 30 was in August 2023 when it was trading at $26,000.