Analysis: The cryptocurrency market may face a longer period of volatility after Bitcoin falls below the $63,000 mark

SmartContractAuditor · 2026-02-24T13:36:23+00:00

Bitcoin recently dropped to $62,700, then stabilized at $63,200, with a daily decline of approximately 3.4%. The market is experiencing overall pressure, and analysts believe this sell-off is due to leverage liquidations rather than a collapse in confidence. The current key range is between $60,000 and $63,000. If this level holds, a rebound is possible; if broken, it could trigger a new round of liquidations. The market is paying attention to sentiment indicators and the movement of risk assets.

SmartContractAuditor

2026-02-24 13:36:23

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Odaily Planet Daily reports that Bitcoin briefly dropped to around $62,700, then stabilized at approximately $63,200, with a daily decline of about 3.4% and a weekly drop of nearly 7%. The total crypto market capitalization fell back to about $2.25 trillion, indicating overall sector pressure. Several analysts pointed out that this round of selling resembles more of a leverage wipeout and tactical retreat rather than a complete collapse of long-term confidence. Short-term holders faced concentrated liquidations, with hundreds of millions of dollars in positions forcibly closed, funding rates turning negative, and open interest continuously declining; on-chain signals show that some long-term holders are still holding or quietly increasing their positions. Presto Research analyst said that Bitcoin falling below $63,000 is more due to a general loss of confidence rather than a single event trigger. On a macro level, factors such as US tariff uncertainties, geopolitical tensions, and weak real estate data have compounded, reinforcing risk aversion sentiment. In contrast, traditional markets have shown more resilience, with liquidity in the crypto sector shrinking and deleveraging issues becoming more prominent.

The current market is in a critical balancing zone. If the $60,000–$63,000 range holds, combined with oversold recovery and short covering, a temporary rebound may occur; if it effectively breaks below, it could trigger a new round of liquidations and test the willingness of long-term holders to hold their positions. The market is closely watching sentiment indicators, ETF capital flows, and global risk asset trends to determine the next direction. (Crowdfundinsider)

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