Bitcoin Under $64,000 as Traders Face $1.6B Liquidation Flush
Bitcoin hovered near $64,000 on Wednesday after a sharp market-wide selloff erased billions from digital asset valuations and triggered more than $1.6 billion in liquidations across crypto derivatives markets.
Summary:
- Bitcoin fell below $64,000 as crypto liquidations exceeded $1.6 billion in 24 hours.
- The Fear & Greed Index dropped to 20, signaling elevated risk aversion across markets.
- On-chain data suggests long-term holders remain profitable, with Bitcoin’s realized price near $53,800.
The decline pushed the CoinMarketCap’s Crypto Fear & Greed Index down to 20, firmly within “Fear” territory, while total cryptocurrency market capitalization fell to approximately $2.22 trillion. Despite the aggressive correction, on-chain analysts argue the current drawdown may represent a large-scale transfer of coins between market participants rather than the beginning of a new bear market.
Market Sentiment Deteriorates as Liquidations Accelerate
The latest wave of selling pressure extended losses across major cryptocurrencies. Bitcoin trades around $64,000, down nearly 5% over the past 24 hours and more than 12% over the last seven days. Ethereum fell below $1,800, while Solana dropped toward the $70 level after losing almost 13% during the same period.
Market positioning data highlights the severity of the move. According to CoinGlass, approximately 271,500 traders were liquidated over the past 24 hours, with total liquidations reaching $1.61 billion. Long positions accounted for roughly $1.35 billion of those losses, indicating that bullish traders were caught offside as prices rapidly declined.
The liquidation heatmap shows Bitcoin and Ethereum leading the forced deleveraging event, accounting for a substantial share of wiped-out positions. Historically, such large-scale liquidation cascades often occur near periods of heightened volatility, where leveraged traders are forced to exit positions regardless of market fundamentals.
Bitcoin Technical Analysis: Bears Remain in Control
From a technical perspective, Bitcoin remains firmly within a short-term downtrend.
The 30-minute TradingView chart shows BTC trading below its 20, 50, 100, and 200-period moving averages, confirming that sellers continue to dominate price action. The recent recovery from the $61,500 area has so far failed to reclaim key resistance levels clustered between $65,400 and $65,800.
Several bearish order blocks remain overhead, suggesting that any relief rally could face significant selling pressure before a broader trend reversal develops.
Key Levels to Watch
- Immediate Support: $62,000-$62,600
- Major Support: $60,000
- First Resistance: $65,400
- Secondary Resistance: $65,800-$66,800
- Long-Term Resistance: $69,800
Momentum indicators also remain weak. Relative Strength Index (RSI) readings continue to hover below neutral territory, indicating that buyers have yet to regain meaningful control.
Analyst Perspective: While the short-term chart remains bearish, traders are closely watching whether Bitcoin can reclaim the $65,500 zone. A move above that level could invalidate the current bearish structure and open the door for a stronger recovery.
Conversely, failure to hold above $62,000 would increase the probability of another leg lower toward the psychologically important $60,000 level.
The CryptoQuant market data confirms a period of active deleveraging, as the concurrent decline in both Bitcoin’s price and Open Interest signals the widespread liquidation of long positions.
This reduction in total market exposure suggests that traders are aggressively exiting the market to either cut losses or reduce risk, rather than initiating new short positions. While this flushing of leveraged bets often results in immediate downward pressure, it can ultimately lead to a more stable market environment by clearing out excess speculation and reducing the risk of further liquidation-driven price cascades.
On-Chain Data Suggests a Massive Change of Hands
Despite the weakness in price, several on-chain indicators paint a more nuanced picture.
CryptoQuant CEO Ki Young Ju described the current environment as a “massive change of hands,” noting that Bitcoin’s average investor cost basis remains near $53,000. Historically, major bear markets have typically concluded only after Bitcoin falls below its realized price – a metric representing the average acquisition cost of all coins in circulation.
READ MORE: Mt. Gox Transfers Over 10,000 Bitcoin Amid Repayment Push
Current CryptoQuant data shows Bitcoin trading around $64,000, while realized price sits near $53,800. This means the average Bitcoin holder remains significantly in profit despite the ongoing correction.
The observation becomes even more notable when considering institutional demand. Since January 2023, Strategy has accumulated more than 711,000 BTC while selling only a negligible amount. During the same period, U.S. spot Bitcoin ETFs absorbed more than 500,000 BTC from the market.
Combined, ETFs and corporate treasury purchases have removed more than 1.2 million BTC from available circulation. Yet Bitcoin has returned to price levels last seen in early 2024, suggesting substantial distribution from other market participants is offsetting that demand.
What Investors Should Watch Next
The next several trading sessions could prove critical for determining whether the current correction evolves into a deeper decline or stabilizes into a broader accumulation phase.
Investors are closely monitoring:
- Bitcoin’s ability to reclaim $65,500 resistance.
- Whether realized price support near $53,800 continues to hold as a macro floor.
- ETF flow trends for signs of renewed institutional demand.
- Funding rates and open interest following the $1.6 billion liquidation event.
For now, market sentiment remains fragile. However, history suggests that periods of extreme fear and aggressive deleveraging often create the conditions for significant trend reversals. While technical indicators continue to favor the bears in the near term, on-chain metrics indicate that Bitcoin remains well above levels typically associated with full-cycle bear market capitulation, leaving investors focused on whether this correction represents panic selling or a broader market reset.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Zdravkov
Reporter at CoinsPress
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
