$617M Long Liquidation Sparks Bitcoin Rebound, Traders Eye $70K Relief Rally

Bitcoin’s slide to around US$61,300 (AU$86K) forced a wave of leveraged long positions to close, before a sharp rebound left traders split over whether the flush marked a short-term bottom or a trap.

CoinGlass data showed more than US$617 million (AU$870 million) in long liquidations during the move, part of over US$737 million (AU$1.04 billion) in total positions wiped over 24 hours. 

The token then recovered about 5.5% to near US$64,700 (AU$91K), a bounce that coincided with reports that Israel and Lebanon had agreed to a ceasefire, easing the geopolitical risk that had weighed on broader market sentiment.

Read more: Warren, Sanders Urge Labor Department to Reject Crypto-Friendly 401(k) Rule 

Bitcoin Bulls See a Bottom

The speed of the rebound drew bullish reads. Trader ZordXBT pointed to Bitcoin’s long downside wick as evidence that “buyers stepped in aggressively near the lows,” while trader RidaaXBT said Bitcoin “could stage a relief bounce toward the $69,000–$70,000 range.”

Those targets are traders’ own projections rather than confirmed direction. The forced unwinding of long positions can clear leverage from the market and, in past cycles, has occasionally preceded local recoveries, though it offers no guarantee of one.

Trader Hitman42.eth cautioned that the bounce “may end up trapping bulls,” reflecting a more defensive stance among chartists watching for a failed retest of broken support.

Read more: Telegram Brings Crypto Full Circle, Rebranding Toncoin Back to Gram

The post $617M Long Liquidation Sparks Bitcoin Rebound, Traders Eye $70K Relief Rally appeared first on Crypto News Australia.