- Bitcoin price dropped sharply, hitting two-week lows around $61,000 and nearing the $60,000 support level after disappointing trading volumes for the new Hong Kong Bitcoin ETFs on the first day.
- Crypto liquidations totaled around $275 million over 24 hours as bearish sentiment took over the market.
- Traders are closely watching the $60,000 level as a potential support area, with some concerns over increased shorting activity in Bitcoin futures.
Bitcoin’s price has fallen sharply in recent days, dipping below the $60K support level amid a broader crypto market sell-off. Nearly $300 million worth of positions have been liquidated across major exchanges as bears take control.
BTC Drops Through Key Price Levels
The price of Bitcoin plunged below $61K over the weekend after failing to hold above the $65K resistance. This triggered a wave of long liquidations, with over $275M worth of positions being force-closed in the past 24 hours according to data from CoinGlass.
BTC is now trading around $60.5K, having hit its lowest level in two weeks. The cryptocurrency has fallen over 7% in the past 24 hours.
New Spot ETF Volumes Disappoint
The negative momentum comes as volumes on new Bitcoin spot exchange-traded funds (ETFs) in Hong Kong fell short of expectations on their launch day. While still impressive given the size of the market, the inflows were far below what was seen with the US ETFs back in 2021.
This has raised some concerns among analysts that spot ETF demand may be waning. However, the timing of the Hong Kong launch could help contribute to overall spot ETF volumes at a time when US ETFs have seen small outflows recently.
Eyes on Support Levels
With Bitcoin still in a consolidation phase between $60K and $75K, traders are watching to see whether $60K will hold as support. The 50-day EMA currently sits around $64.5K, so a daily close below this would shift the market structure to bearish.
There are also some warning signs coming from the futures markets, which have seen increased shorting activity. A break below $60K could open the doors for a steeper correction toward $52K. For now, bulls are hoping the $60K zone will hold and allow BTC to regroup.
Conclusion
Bitcoin’s price action remains choppy as it continues to trade in a range between key support and resistance levels. While still in an overall uptrend, a break below $60K would likely see more downside for BTC in the near-term. The crypto markets remain vulnerable to sharp sell-offs, especially amid low weekend trading liquidity.
