Bitcoin (BTC) continued to reel under pressure after falling below $61,000 causing more than $122 million in long positions to be wiped out. This massive liquidation suggested that there could be a drop below $60k level as BTC traded at $60, 750 at press time.
According to the data from CoinGlass, within the 24 hours prior to 1:25 PM UTC on the 24th of June, more than $122 million were liquidated from the long Bitcoin positions with leverage. The liquidations happened on the background of Bitcoin’s price decline by more than 5% within a single day and its temporary drop below $61,000.
Mt. Gox Repayments Add to Selling Pressure
The recent price drop coincides with news from the collapsed crypto exchange Mt. Gox, which announced it would start processing repayments to its users. More than $9.4 billion worth of Bitcoin is owed to approximately 127,000 Mt. Gox creditors.
This influx of Bitcoin could introduce substantial selling pressure, potentially impacting its price. Eric Balchunas, a senior ETF analyst at Bloomberg, noted it could negate recent ETF inflows.
Additionally, on June 19, a German government-labeled wallet moved nearly 6,500 BTC, adding to the selling pressure. This wallet has held nearly 50,000 BTC since February 2024, worth over $3 billion at Bitcoin’s current price above $61,000.
Bitcoin’s RSI Indicates Oversold Conditions
Upon the decline to $61K, Bitcoin’s RSI indicated the cryptocurrency to be in the ‘oversold territory.’ In the daily chart, the RSI of Bitcoin touched 28 indicating the most oversold level since it was trading at $26,000 in August of 2023.
The combination of leveraged position liquidations, Mt. Gox repayments, and increased selling pressure from large holders could continue to influence Bitcoin’s price movements in the coming days.
Also Read: Metaplanet Inc. to Purchase $6.3M Bitcoin via Bond Issuance
