Analyst: Leverage liquidation dominates this round of decline, with $60,000 being a key support area for Bitcoin
Presto Research Associate Researcher Min Jung stated that Bitcoin's drop below $63,000 seems to reflect a broad deterioration in cryptocurrency market sentiment rather than a single fundamental catalyst. In the short term, macro headlines, particularly those surrounding tariffs and resurfacing geopolitical uncertainties, are exacerbating the risk-off sentiment towards digital assets.Jung added, "It is noteworthy that even as traditional risk assets remain relatively resilient, cryptocurrencies have performed poorly recently. This divergence suggests that the sell-off is not purely driven by macro factors, but also reflects weak marginal demand, thinning liquidity conditions, and ongoing deleveraging within the crypto-native market."Bitrue Research Director Andri Fauzan Adziima stated, "We have seen massive long liquidations, with hundreds of millions evaporating, funding rates remaining negative, a sharp decline in open interest, and the futures market clearly leaning bearish. Short-term holders are suffering significant losses, but long-term holders have not yet begun large-scale selling; on-chain HODL signals indicate that some are quietly accumulating during this strategic de-risking process."Adziima pointed out that the $60,000-$63,000 range is a key support area for Bitcoin. If the price can hold steady at or above this level, the market may benefit from the damage caused to shorts by negative funding rates, creating conditions for a classic "squeeze after a washout." The analyst added that potential easing of macroeconomic conditions or a return of ETF funds could further support this trend.Adziima stated that, on the other hand, if it falls below $60,000, in the worst-case scenario, an accelerated chain liquidation due to worsening macro conditions could open the door to a drop towards the mid-$55,000s or even as low as $47,000. Adziima remarked, "At that point, we might ultimately force some long-term holders to capitulate, turning this into a deeper bear market extension before the true cycle bottom arrives."