Bitcoin (BTC) saw more than $122 million in leveraged long positions liquidated as its price fell below the $61,000 level, increasing the risk of potentially dropping below the critical $60,000 threshold.
In the 24 hours leading up to 1:25 pm UTC, CoinGlass data reported that over $122 million worth of cumulative leveraged long Bitcoin (BTC) positions had been liquidated.
The liquidations were sparked by a more than 5% intraday drop in Bitcoin’s price, which briefly dipped below the $61,000 mark at 1:25 pm UTC on June 24. According to CoinMarketCap, the world’s first cryptocurrency is down over 7% on the weekly chart.
Leveraged positions can indicate the key price level of an underlying asset. According to CoinGlass, a potential move below the $60,500 mark would result in the liquidation of over $180 million worth of leveraged long positions across all exchanges.
The price decline comes shortly after the collapsed crypto exchange Mt. Gox announced that it would begin processing repayments for its users. This could introduce significant sell pressure for the market, according to Eric Balchunas, a senior exchange-traded fund (ETF) analyst at Bloomberg.
In addition, a German government-labeled wallet moved nearly 6,500 BTC on June 19, according to Arkham Intelligence. The wallet has held nearly 50,000 BTC since February 2024, worth over $3 billion at Bitcoin’s current price of above $61,000.
Following the drop in price to below $61,000, Bitcoin’s price has become the most oversold since it was trading at the $26,000 level. Based on the relative strength index (RSI), Bitcoin’s RSI has reached 28 on the daily chart, signaling that the BTC is in “oversold” conditions. The last time Bitcoin’s RSI was below 30 was in August 2023, when BTC was trading at the $26,000 level.