Bitcoin (BTC) witnessed a significant liquidation of more than $122 million in leveraged long positions as its price dipped below the $61,000 threshold, increasing the possibility of dropping below the crucial $60,000 level.
Within the 24-hour period leading up to 1:25 pm UTC, over $122 million worth of leveraged long positions in Bitcoin (BTC) were liquidated, as reported by CoinGlass data.
The liquidations were set off by a more than 5% intraday decline in Bitcoin’s price, briefly causing it to fall below $61,000 at 1:25 pm UTC on June 24. According to CoinMarketCap data, the original cryptocurrency is down by more than 7% on the weekly chart.
Leveraged positions can provide insights into the key price levels of an underlying asset. According to CoinGlass, a potential drop below the $60,500 mark could result in the liquidation of over $180 million worth of leveraged long positions across various exchanges.
The recent price decline occurred shortly after the announcement from the defunct crypto exchange Mt. Gox that it would commence repaying its users. Mt. Gox owes more than $9.4 billion worth of Bitcoin to around 127,000 creditors, who have been waiting for more than a decade to access their funds.
This repayment process could introduce significant selling pressure on the market, as noted by Eric Balchunas, a senior ETF analyst at Bloomberg. Additionally, a wallet labeled by the German government moved nearly 6,500 BTC on June 19, adding to the potential selling pressure.
Following the drop below $61,000, Bitcoin’s price is currently experiencing the most oversold conditions since it was trading at around $26,000. This is indicated by the relative strength index (RSI), which has reached 28 on the daily chart, signaling that BTC is oversold.
The last time Bitcoin’s RSI was below 30 was in August 2023, when it was trading at $26,000. This recent pullback in Bitcoin’s price could present an opportunity, according to experts in the decentralized finance (DeFi) sector.