- Bitcoin’s decline intensified as price slipped toward the $61K-$62K support zone.
- Liquidations surged past $530M, signaling forced selling and high leverage unwind.
- Rebound potential hinges on $61K support, with $66K-$67K liquidity targets ahead.
Bitcoin extended its decline on Tuesday, falling below several closely watched price levels as traders reacted to growing market pressure. The cryptocurrency traded near $62,426, marking a 3.47% daily loss and a 5.27% decline over the past week.
The latest pullback triggered a wave of liquidations across the crypto market and shifted investor attention toward critical support levels that could determine Bitcoin’s next major move.
Analysts Focus on Remaining Liquidity Below Market
Several market analysts believe Bitcoin may not have completed its downside move. Crypto Tony noted that Bitcoin has already reached his initial downside target.
However, he expects the asset to revisit lower levels before finding stronger support. According to his outlook, the market could sweep the lows near $61,000 before establishing a more meaningful recovery.
TedPillows expressed a similar view. He pointed out that Bitcoin removed most short-term downside liquidity during the recent selloff. Nevertheless, one significant liquidity cluster remains around the $61,200 region. Consequently, traders continue to monitor that level closely.
Crypto Patel highlighted the sharp breakdown below $63,000, which added further pressure to market sentiment. The move intensified selling activity and encouraged traders to reduce risk exposure.
Related: Grayscale: Bitcoin Set to Surge if Fed Holds Off on Further Rate Hikes
Liquidations Surge as Volatility Returns
The latest decline triggered substantial liquidations across derivatives markets. Data from CoinGlass showed that 119,678 traders faced liquidations during the past 24 hours. Total liquidated positions reached approximately $530 million.
Source: X
Moreover, the largest single liquidation occurred on Aster and involved a BTCUSDT position worth $7.06 million. Such large liquidations often increase volatility because forced selling can accelerate downward price movements.
Despite the heavy losses, some traders view the liquidation event as a sign that excessive leverage has left the market. Hence, conditions may become healthier for a potential stabilization phase.
Can Bitcoin Rebound From Current Levels?
TedPillows believes the $61,000 to $62,000 range represents the most important support zone in the near term. Bitcoin lost momentum after failing to maintain strength above $65,000. As a result, sellers regained control and pushed prices lower.
However, analysts also see potential upside opportunities if support remains intact. TedPillows noted that liquidity clusters between $66,000 and $67,000 could attract price action once downside pressure fades. Additionally, a successful defense of current support may encourage buyers to re-enter the market.
Related: Bitcoin Crashes Below $63K: What Sparked Today’s Crypto Market Sell-Off?
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