Why Is Bitcoin Testing Lower Levels Again?
Bitcoin fell below $60,000 at Wednesday’s Wall Street open, reaching its lowest level in two weeks as traders focused on whether the current range floor can hold or whether a deeper liquidity sweep is needed before any relief bounce develops.
The decline followed a weaker daily close near $62,700 on Tuesday, the lowest since June 10. Bitcoin then lost the $63,000 area as short-term support and continued to print lower highs after failing near $66,000 earlier in the week. The move also formed a bearish engulfing candle against Monday’s range, wiping out the prior session’s gains and pointing to softer near-term momentum.
Despite the break below $60,000, traders are still treating the move as part of a broader range rather than a confirmed breakdown. Several short-term forecasts continue to place the lower boundary around $60,000 to $60,500, with any recovery likely to face resistance first near $63,500 and $64,000 before a stronger move toward the upper part of the range.
“It’s time to start bouncing soon on the LTF,” trader Killa wrote on X, referring to low time frames. “Range bound till proven otherwise.”
Is A Relief Bounce Toward $70,000 Still Possible?
The main short-term question is whether the latest downside move is clearing leverage before a rebound or starting a deeper correction. Some traders still expect a relief bounce toward $70,000, but the quality of that move matters. A rally that fails to reclaim stronger supply zones could create what traders call a lower high, leaving bitcoin vulnerable to another retest of the range floor.
RektProof outlined a similar view, saying bitcoin could continue trading with $60,000 as the floor for the rest of the month before moving back toward supply and later forming weak highs near $70,000.
That outlook keeps bitcoin inside a tactical trading environment. Bulls need to see demand absorb selling pressure near the lower range and push price back above short-term resistance. Bears, by contrast, need a clean loss of the $60,000 to $60,500 area to show that the current range has failed.
Crypto trader Lennaert Snyder also urged caution, saying he was not yet ready to buy the initial bounce. “Bitcoin started a little bounce, but I’m not convinced and not buying in yet,” he wrote. He identified $61,500 and $60,500 as the key areas to watch for bullish reactions, while pointing to $63,500 and $64,000 as upside liquidity zones that could attract price before another move lower.
Investor Takeaway
Bitcoin’s decline is being driven by short-term liquidity and leverage pressure rather than a confirmed structural break. The $60,000 to $60,500 area is now the key test: holding it keeps the range intact, while losing it would weaken the case for a near-term rebound.
How Important Is The Liquidity Around $60,500?
Order book data showed more than $525 million in buy bids initially stacked between $60,500 and $61,500, creating a dense demand zone beneath spot price. Bitcoin has already traded through a meaningful part of that area, triggering roughly $270 million in buy orders as price dipped below $61,000.
The remaining bids are concentrated closer to the lower end of that liquidity cluster, where traders are trying to absorb the latest wave of selling. That makes the $60,500 to $61,000 region more important than a normal support level. It is both a technical floor and a liquidity zone where spot demand and leveraged positioning are clustered.
The move below $61,000 also flushed a large portion of leveraged long exposure. More than $125 million in long liquidations were recorded over the past hour, reducing near-term downside liquidation pressure around current levels.
With many long positions already cleared, the liquidation map is now more heavily tilted toward shorts above spot price. More than $1.2 billion in short positions sit near $63,500, while a larger concentration of more than $2.4 billion is positioned near $65,000. If bitcoin stabilizes near the lower range, those short liquidation zones could become upside targets for a fast relief move.
Why Has The Iran Peace Progress Not Helped Risk Assets?
Macro conditions offered limited support. U.S. equities opened mostly flat even after further signs of cooperation between the United States and Iran. President Donald Trump said on Truth Social that there would be “no tolls, no insurance costs, & no other charges of any kind being sought or received by Iran on ships traveling” through the Strait of Hormuz.
The muted market reaction suggests investors had already priced in much of the relief from the U.S.-Iran peace deal. The S&P 500 was up modestly near the open, while the Nasdaq Composite briefly turned slightly negative.
For bitcoin, the lack of follow-through in equities matters because it leaves crypto more exposed to its own liquidity structure. Without a strong risk-asset bid, short-term price action is being shaped by order book demand, liquidation clusters, and whether traders are willing to defend the lower end of the range.
The immediate setup is therefore narrow but important. Bitcoin must hold the lower liquidity zone to keep a relief bounce toward $63,500, $65,000, and possibly $70,000 in play. If buyers fail to defend that area, the current move would shift from a range sweep into a more damaging breakdown.
