Bitcoin Rebounds After $600 Million Long Liquidations, But Bearish Risks Remain

Bitcoin staged a strong recovery after falling close to the $60,000 level, a move that triggered heavy liquidations across the crypto market. Btc dropped to around $61,300 before bouncing more than 5.5% to trade near $63,690.

The recovery came as market sentiment improved following reports that Israel and Lebanon had agreed to implement a ceasefire. The sudden rebound encouraged traders who believe the recent sell off may have cleared excessive leverage from the market.

According to CoinGlass data, more than $737 million in Bitcoin positions were wiped out over a 24-hour period. Long traders suffered the biggest losses, with over $617 million in bullish positions liquidated as prices fell sharply.

Traders Eye Potential Move Toward $70,000

Bitcoin could see a short term relief rally toward the $69,000-$70,000 range after the liquidation driven decline.

Bitcoin Bear Flag Pattern Keeps Pressure on Market

Despite the rebound, Bitcoin’s weekly chart continues to show a bear flag breakdown. Analysts say this technical pattern keeps the possibility of a decline toward the $50,000-$52,000 region on the table.

At the same time, Bitcoin remains above its 200-week simple moving average near $61,800, a level that has historically acted as a major bottom during previous market downturns. A sustained recovery from this support could strengthen the case for another push toward $70,000.