Bitcoin dips under $62,000; $55,000 seen as next support zone
Bitcoin extended its slide this week, dropping from near $74,000 to an intraday low of $61,556 on Thursday over four sessions, weighing on the broader crypto market, CoinDesk reported.
The selloff was accompanied by $4.47 billion in total liquidations over the same period, with $3.82 billion coming from long positions, pointing to outsized damage among highly leveraged bullish bets.
Derivatives and flow indicators have also turned increasingly negative. CoinGlass data show the Coinbase premium has stayed mostly below zero since late April and widened further after May 26, a sign of softer U.S. spot demand and no clear rebound in institutional buying.
Options pricing is reflecting greater downside hedging. Deribit data show Bitcoin's 30-day 25-delta skew moved from 4.2 to -9.4, indicating traders are paying up for downside protection and demand for put options is rising.
Other positioning metrics point to fading risk appetite. Velo data show Bitcoin open interest has fallen from 282,000 BTC to 265,000 BTC since June, while the cumulative volume differential between spot and perpetual contracts has weakened. Overseas media interpreted the shift as reduced buying pressure alongside an increase in fresh short positions.
Illia Otychenko, Chief Analyst at CEX.IO, said heightened geopolitical risk remains the key catalyst. After renewed U.S.-Iran tensions, risk-off sentiment strengthened, with some speculative capital continuing to favor AI stocks over crypto. He added that before the selloff accelerated, the cost basis of Bitcoin's short-term holders slipped below the realized price—a crossover that has often appeared during the middle stages of prior bear markets. With recent buyers now broadly underwater, the market becomes more vulnerable to passive selling, he said.
Otychenko said Bitcoin could still break below $60,000 if historical patterns hold. If that level gives way, he pointed to the next key reference area near $54,000, close to the realized price. He also noted long-term holder supply hit a new high this week, a pattern often seen during bear markets, suggesting a bottom could take shape over the next three to six months.
Robin Singh, CEO of Koinly, told foreign media that Bitcoin is in a weaker part of the cycle. If price holds above $60,000 and then rolls over again, he said a move into the $50,000 range would not be surprising and could become an area for a new bottom to form.
Not all institutional views have turned bearish. Standard Chartered analyst Geoffrey Kendrick has taken a more contrarian stance, arguing that a sharp pickup in buying once selling pressure fades could signal a cyclical low. He highlighted that ETF holdings have been relatively steady, edging down only from 682,000 BTC to 674,000 BTC since February—a smaller decline than many had feared.
On prediction market Myriad, users are currently more inclined to wager that Bitcoin will reach $55,000 before it climbs to $84,000, underscoring cautious near-term sentiment.
