Bitcoin Rebounds, But Liquidation Data Suggests $60K Drop Possible
Bitcoin has been rejected at $66,000, leading to a massive wave of capital exiting the market. The cryptocurrency is now attempting to cross this level after a 4.8% drop. According to liquidation data from CoinGlass, there is a risk of a drag lower for Bitcoin.
Liquidity clusters around the $60,000 to $61,500 level could pull the price lower, potentially dragging it down to fill buy orders before any sustained rebound. However, this outcome is not guaranteed, and the losses absorbed by short and long traders over the past day should be weighed.
The Funding Rate, which gauges whether investors are financing long or short contracts based on available capital, shows the bulls in control. The majority of open positions lean heavily toward the long side, with a Long/Short Ratio of roughly 1.04 pointing to growing long volume in Bitcoin's perpetual market.