Key Insights:
- Bitcoin dropped $2,000, triggering $130 million in long liquidations within hours.
- Weekly RSI hits 25.6, marking the lowest oversold reading in history.
- Analysts watch $60,000 support as structure mirrors prior cycle breakdown pattern.
Bitcoin fell under $63,000 after a rapid selloff erased about $60 billion from the crypto market in four hours. The price dropped nearly $2,000 during the move. Data shows Bitcoin trades at $63,221.80, down 3.81% in 24 hours and 7.51% over seven days. Trading volume climbed to $49.26 billion as volatility increased.
The decline came without any major economic release or crypto event. Traders focused on the timing of the move.
Bull Theory posted,
“After 10 AM manipulation, now we have 8 PM manipulation.”
The account added that $130 million in long positions were liquidated during the drop.
Liquidations Accelerate the Decline
As Bitcoin slipped below $63,000, leveraged positions closed at scale. Exchanges recorded heavy long liquidations as price broke intraday support near $64,800. The move extended quickly toward the $62,800 area before minor stabilization.
Bull Theory described the action as a “pure Algo dump from some entity.” While no official confirmation exists, the speed of the decline drew attention. Large red candles formed within minutes, pushing price through short-term levels and forcing stops to trigger.
Weekly RSI Reaches Record Low
On higher time frames, momentum readings show extreme conditions.
Analyst Nic wrote,
“According to the weekly RSI, this is the most oversold it has ever been.”
Notably, the weekly RSI now stands at 25.6.
That reading sits below levels seen during the 3AC and Luna collapse in 2022. Weekly RSI values under 30 often appear during deep market pullbacks. Bitcoin continues to trade near the lower-$60,000 range as sellers maintain pressure.
Market Watches Key Support Zones
Some traders compare the current setup to the 2021 cycle peak. Analyst Nehal stated that Bitcoin“could be setting up for a final flush toward $50,000 in March.” The chart shows a pattern similar to the double-top structure seen in the prior cycle.
Bitcoin peaked near $126,000 before this correction began. Price now approaches a rising long-term trendline between $55,000 and $60,000. Market participants monitor this zone closely. A sustained move below $60,000 could open room toward $55,000 or lower, while a recovery above $70,000 may ease short-term selling pressure.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
