Analyst: Leverage Liquidation Drives This Round of Decline, $60,000 is Bitcoin's Key Support Zone

According to Min Jung, Deputy Researcher at Presto Research, Bitcoin's fall below $63,000 appears to reflect a broad deterioration in cryptocurrency market sentiment rather than a single fundamental catalyst. In the short term, macro headlines, particularly those surrounding tariffs and resurfacing geopolitical uncertainties, are exacerbating risk-off sentiment towards digital assets.

Jung added: "It is noteworthy that cryptocurrencies have underperformed recently even as traditional risk assets have remained relatively resilient. This divergence suggests that this is not a purely macro-driven sell-off; it also reflects weak marginal demand, thinning liquidity conditions, and ongoing deleveraging within the crypto-native market.

Andri Fauzan Adziima, Head of Research at Bitrue, stated: "We have seen massive long liquidations, with hundreds of millions of dollars wiped out. Funding rates remain persistently negative, open interest has plummeted, and the futures market is clearly skewed bearish. Short-term holders are suffering significant losses, but long-term holders have not yet begun large-scale selling; on-chain HODL signals show that accumulation is quietly happening amidst strategic de-risking."

Adziima pointed out that the $60,000-$63,000 range is a key support zone for Bitcoin. If the price can stabilize at or above this level, the market might benefit from the squeeze on shorts caused by negative funding rates, creating conditions for a classic 'short squeeze after a washout.' The analyst added that potential easing of macroeconomic conditions or a return of ETF inflows could further support this move. (The Block)