Bitcoin’s price drop toward $61,300 triggered massive liquidations
The Bitcoin price drop toward the $60,000 area triggered the liquidation of over $600 million in long positions, fueling market uncertainty: does the subsequent rebound represent a genuine bottom or merely a technical recovery following a deleveraging event?
The rebound from the low was 5.52%, bringing the price to around $64,690. The recovery coincided with news of a ceasefire agreement between Israel and Lebanon. Data from CoinGlass shows that within a 24-hour window, total liquidations on BTC positions exceeded $737 million, with traders holding long positions bearing the heaviest share: over $617 million wiped out in just a few hours, underscoring how aggressively bulls were positioned ahead of the sell-off.
Despite the losses, the sharp rebound led some traders to declare a bottom had been reached. Trader RidaaXBT pointed to a possible recovery toward the $69,000–$70,000 range, arguing that the liquidation-driven decline had exhausted short-term sellers. Analyst ZordXBT shared a similar view. Taking the opposite stance, trader Hitman42.eth warned that the rebound could prove to be a bull trap, urging caution before declaring the downtrend over.
