Analyst: Leveraged liquidations dominated this round of decline, with $60,000 being a key support level for Bitcoin

On February 24, Presto Research Associate Min Jung stated that Bitcoin falling below $63,000 seems to reflect a broad deterioration in market sentiment for cryptocurrencies rather than a single fundamental catalyst. In the short term, macro headlines—especially those surrounding tariffs and re-emerging geopolitical uncertainties—are intensifying risk-averse sentiment in digital assets. Jung added, “It’s worth noting that even when traditional risk assets remain relatively resilient, cryptocurrencies have recently underperformed. This divergence indicates that the sell-off is not purely driven by macro factors but also reflects waning marginal demand, thinning liquidity, and ongoing deleveraging within the crypto-native market.” Bitrue Research Director Andri Fauzan Adziima said, “We have seen large-scale long liquidations, hundreds of millions of dollars wiped out, funding rates remaining negative, open interest sharply declining, and the futures market showing a clear bearish bias. Short-term holders are suffering heavy losses, but long-term holders have not yet begun to sell off en masse; on-chain HODL signals indicate that, during strategic risk reduction, some are quietly accumulating.” Adziima pointed out that the $60,000–$63,000 range is a critical support zone for Bitcoin. If the price can hold steady at or above this level, the market could benefit from negative funding rates hurting shorts, creating conditions for a classic “short squeeze after a washout.” The analyst added that a potential easing of macroeconomic conditions or a return of ETF funds could further support this trend. Adziima stated that on the other hand, if the price drops below $60,000, in the worst case, worsening macro conditions could accelerate chain liquidations, opening the door to a decline toward the mid-$55,000s or even as low as $47,000. He said, “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.”