Bitcoin Price Could Be Pulled Lower by $60K Liquidity Cluster

Bitcoin's recent rejection at $66,000 has led to a sharp pullback, with a massive wave of capital exiting the market. The cryptocurrency is now attempting to cross this level after a 4.8% drop.

Despite renewed optimism in the market, liquidation data suggests there's still a risk of a drag lower. According to recent analysis from CoinGlass, a build-up of liquidity is concentrated around the $60,000 to $61,500 level, which could pull the price down to fill buy orders before any sustained rebound.

The data also shows that short liquidations outpaced long positions by nearly 12 times over the past day, indicating how much weight long traders carry on Bitcoin at the moment. However, the Funding Rate, which gauges whether investors are financing long or short contracts based on available capital, shows bulls in control.

Bitcoin's scarcity is also increasing, driven by whale accumulation and the influence of key players including miners, who have sold less Bitcoin than their one-year average.