Bitcoin (BTC) experienced the liquidation of over $122 million in leveraged long positions as its price dropped below the $61,000 mark, raising the risk of potentially falling below the critical $60,000 threshold.
Over $122 million worth of cumulative leveraged long Bitcoin (BTC) positions have been liquidated in the 24 hours leading up to 1:25 pm UTC, according to CoinGlass data.
The liquidations were triggered by an over 5% intraday drop in Bitcoin’s price, which briefly fell below the $61,000 mark at 1:25 pm UTC on June 24. The world’s first cryptocurrency is down over 7% on the weekly chart, according to CoinMarketCap data.
Leveraged positions can show the key price level of an underlying asset. According to CoinGlass, a potential move below the $60,500 mark would liquidate over $180 million worth of leveraged long positions across all exchanges.
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Will Mt. Gox’s $9.4 billion tank Bitcoin’s price in July?
The price drop comes hours after collapsed crypto exchange Mt. Gox said it would start processing repayments for its users.
More than $9.4 billion worth of Bitcoin is owed to approximately 127,000 Mt. Gox creditors, who have been waiting for over 10 years to access their funds.
This could introduce significant sell pressure for the market, according to Eric Balchunas, a senior exchange-traded fund (ETF) analyst at Bloomberg. He wrote in a June 24 X post:
“That’s like over half of all the ETF inflows being negated in one shot. Damn.”
Adding to upcoming selling pressure, 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.
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Bitcoin has not been this oversold since $26,000
Following the price drop to sub $61,000, Bitcoin’s price has become the most oversold since it was trading at the $26,000 mark.
This is based on the relative strength index (RSI), a popular momentum indicator used to measure whether an asset is oversold or overbought based on the magnitude of recent price changes.
On the daily chart, Bitcoin’s RSI has reached 28, 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 mark.
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