Bitcoin Price Update: BTC Bulls Face Challenges Holding $60K as Liquidation Rises

Bitcoin temporarily fell beneath $59,000 late Thursday as waves of selling impacted the cryptocurrency market.

This decline pushed BTC down to an intraday low near $58,189 before a minor bounce back towards the $60,000 level.

As per crypto.news market analytics, Bitcoin continues to experience selling pressure after slipping below the $60,000 mark during the recent downturn. Traders are now watching to see if the $59,000-$60,000 range can revert to a supportive status.

The selloff matched declines in major cryptocurrencies. Ether dropped to around $1,500, with altcoins witnessing even steeper losses due to liquidations in leveraged positions. This decline followed several days of reduced ETF demand and a waning risk appetite within crypto markets.

Previously, Bitcoin had spiked toward $62,000 after a $459 million ETF outflow, but sellers remained dominant. That rebound has since faded, leaving BTC hovering near the support level that has been closely monitored since June.

Impact of Bitcoin ETF outflows and liquidations

On Thursday, U.S. spot Bitcoin ETFs experienced a loss of $696 million, according to data from SoSoValue ETF. This outflow represents a continuation of six consecutive trading days of net redemptions. U.S. spot Ether ETFs faced an $81.9 million decline, marking their sixth day of outflows.

The selling pressure originating from Bitcoin ETFs was extensive. BlackRock’s IBIT, the largest fund, accounted for nearly $63 million of the outflows. Fidelity’s FBTC lost $3.5 million, while Grayscale witnessed approximately $23 million exit. No fund documented significant inflows during this timeframe.

Leveraged traders faced major liquidations as well. CoinGlass reported that over $1 billion in crypto positions were liquidated over a 24-hour period. Long traders were the most affected, with around $842 million in long positions being closed.

Bitcoin made up the bulk of the liquidation activity with approximately $489 million in forced closures, followed by Ether at about $295 million. The largest single liquidation was a $38.05 million BTC-USD position on Hyperliquid, showcasing how quickly substantial leveraged positions were unraveled.

Bitcoin traders eye the $59K-$60K range

Crypto trader Daan Crypto Trades noted that Bitcoin has absorbed significant liquidity around the $60,000 mark. In a post on X, he mentioned that the primary liquidity cluster is now located near $67,000, aligning with June highs.

He also stressed the importance of the $59,000-$60,000 range. If Bitcoin can establish stability in this area and buyers defend it, a market stabilization may occur. However, he warned that should BTC approach this support level again, it could lead to further declines on higher timeframes.

Market commentator BATMAN pointed out that Bitcoin is nearing a likely weekly death cross. He highlighted that the previous death cross didn’t signify an absolute bottom but instead began a prolonged consolidation phase prior to the eventual cycle low.

EGRAG CRYPTO also mentioned a bearish crossover between the 13-week and 33-week moving averages. He suggested that a two-week close above $74,000 would weaken this bearish setup. Until then, he indicated that the cycle-bottom window remains open, with potential downside targets around $47,000, $43,000, and $37,000.

Technical indicators remain fragile

Bitcoin’s short-term indicators are currently showing weak momentum, even after a minor recovery. The MACD indicates a slight bullish crossover, with its histogram moderately positive at 16.31. The MACD line is around -2,269.45, slightly above the signal line at -2,285.76.

This scenario suggests that the downside momentum has lessened. Nevertheless, both lines remain significantly below the zero threshold, illustrating a still-weak signal and that the recovery has yet to shift the overall trend.

The RSI is positioned around 32.98, below its moving average of approximately 37.77, keeping Bitcoin near oversold territory. Buyers have yet to reclaim control, as the RSI remains well below the neutral 50 line.

Volume is at about 12K, with elevated selling activity observed during June’s downturn. The most recent candle indicates a slight recovery; however, the market still lacks solid confirmation. Bitcoin must regain the $62,800-$65,000 range to illustrate that buyers are re-establishing short-term strength.

Tension among short-term holders

CryptoQuant analyst Amr Taha indicated that Bitcoin’s short-term holder market cap fell to $237.7 billion on June 26, marking its lowest point since October 2, 2024, when it was around $239.7 billion. This reduction shows that many recent buyers are currently facing unrealized losses.

He also noted that the Crypto Fear & Greed Index declined to 12 on June 25, placing the market in Extreme Fear as Bitcoin traded around $59,700. While this reading isn’t the lowest this year, it reflects increased anxiety among recent purchasers at a lower BTC price.

Taha also reported that short-term holders transferred approximately 50,000 BTC to exchanges at a loss within 24 hours. Binance received around 9,500 BTC from this group, marking its highest transfer since early June. While these exchange transfers don’t confirm that all coins were sold, they indicate that more BTC has migrated to platforms where trading can occur.

As mentioned earlier, Bitcoin instigated significant liquidations after dropping below $60,000. Prior analyses by crypto.news outlined how the $60,000 support level had been weakened following a bearish chart breakdown.

While macro developments may reduce panic, they haven’t yet altered the chart dynamics. An interim U.S.-Iran peace agreement grants UN nuclear inspectors access to Iran, although specific details still have points of contention.

For Bitcoin, the immediate concern is evident: uphold the $59,000-$60,000 support range or risk facing another drop.