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

BlockBeats News, February 24th, Presto Research Deputy Researcher Min Jung stated that Bitcoin's drop below $63,000 seemed to reflect widespread deterioration in cryptocurrency market sentiment rather than a single fundamental catalyst. In the short term, macro headwinds, especially around tariffs and resurfacing geopolitical uncertainties, are exacerbating the risk-off mood of digital assets.

Jung added, "It is worth noting that even as traditional risk assets remain relatively resilient, cryptocurrencies have recently underperformed. This divergence indicates that this is not purely a macro-driven sell-off but also reflects weak marginal demand, thinning liquidity conditions, and ongoing deleveraging within the crypto-native market."

Bitrue Research Director Andri Fauzan Adziima said, "We have seen massive long liquidations, with hundreds of millions of dollars vanishing into thin air, the funding rate staying negative, open interest dropping sharply, and the futures market significantly skewed to the downside. Short-term holders have suffered heavy losses, but long-term holders have not yet begun mass selling; on-chain HODL signals show that some are quietly accumulating in the process of strategically derisking."

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 done to the shorts by the negative funding rate, setting the stage for a classic "cleanse then squeeze" scenario. The analyst added that a potential easing of the macroeconomic situation or a return of ETF inflows could further support this trend.

Adziima stated that, on the other hand, if it falls below $60,000, in a worst-case scenario, with cascading liquidations accelerating due to deteriorating macro backdrop, it could open the door to a decline to the mid $55,000s or even as low as $47,000.

Adziima said, "At that point, we may ultimately force some long-term holders to capitulate, turning this into a more profound bear market extension until the true cycle bottom arrives."