Analyst: Leverage Liquidation Driven This Round of Decline, $60,000 Key Support Area for Bitcoin

On February 24, Presto Research Deputy Researcher Min Jung noted that Bitcoin’s dip below $63,000 appears to reflect broad-based weakening in crypto market sentiment—not a single fundamental catalyst. In the near term, macro headwinds (notably tariff tensions and renewed geopolitical uncertainties) are amplifying digital assets’ risk-off tone. Jung added: “Notably, while traditional risk assets have held up relatively well, cryptocurrencies have recently underperformed. This divergence suggests the sell-off isn’t purely macro-driven—it also reflects weak marginal demand, thinning liquidity, and ongoing deleveraging in crypto-native markets.” Bitrue Research Director Andri Fauzan Adziima said: “We’ve seen massive long liquidations—hundreds of millions of dollars wiped out—along with negative funding rates, a sharp drop in open interest, and a heavily bearish skew in the futures market. Short-term holders have taken heavy losses, but long-term holders haven’t started mass selling yet; on-chain HODL signals show some are quietly accumulating while strategically derisking.” Adziima noted the $60k-$63k range is a key support level for Bitcoin. If prices hold steady at or above this zone, the market could benefit from shorts being squeezed by negative funding rates—setting up a classic “cleanse then squeeze” scenario. The analyst added that a potential macroeconomic easing or return of ETF inflows could further boost this trend. On the flip side, Adziima said, if Bitcoin falls below $60k, a worst-case scenario could see cascading liquidations accelerate amid a worsening macro backdrop—opening the door to a drop to the mid-$55k range or even $47k. Adziima added: “At that point, we could see some long-term holders capitulate—turning this into a deeper bear market extension until the true cycle bottom hits.”