Bitcoin (BTC) saw the liquidation of over $122 million in leveraged long positions as its price fell below $61,000, raising concerns about a potential drop below the crucial $60,000 level.
Data from CoinGlass revealed that over $122 million in leveraged long Bitcoin positions were liquidated within 24 hours leading up to 1:25 pm UTC on June 24. This liquidation was triggered by a sharp intraday price drop of over 5%, with Bitcoin briefly dipping below $61,000. On a weekly chart, Bitcoin has declined by more than 7%, according to CoinMarketCap.
Leveraged positions often highlight key price levels for an asset. CoinGlass data indicates that if Bitcoin falls below $60,500, it could lead to the liquidation of over $180 million in leveraged long positions across all exchanges.
Mt. Gox Repayment Could Impact Bitcoin Price
The price decline coincides with the announcement from the defunct crypto exchange Mt. Gox, which plans to start repaying its users. More than $9.4 billion worth of Bitcoin is owed to approximately 127,000 creditors, who have waited over a decade to access their funds. This could introduce substantial selling pressure to the market.
Eric Balchunas, a senior ETF analyst at Bloomberg, noted that this repayment could significantly impact the market, likening it to negating over half of all ETF inflows at once. Additionally, a German government-labeled wallet moved nearly 6,500 BTC on June 19, according to Arkham Intelligence. This wallet has held nearly 50,000 BTC since February 2024, valued at over $3 billion at Bitcoin’s current price above $61,000.
Bitcoin’s Oversold Condition
Following the drop below $61,000, Bitcoin has reached its most oversold condition since it was trading at $26,000. This assessment is based on the Relative Strength Index (RSI), a momentum indicator that measures whether an asset is oversold or overbought. On the daily chart, Bitcoin’s RSI has dropped to 28, signaling that BTC is in “oversold” territory.
