Bitcoin slides back under $60K as $415M in longs get rekt and MSTR drawdown keeps the bears company

Bitcoin [BTC] fell back below the $60,000 mark in the past 24 hours, with derivatives data showing $415.83 million in trader liquidations, of which $319.18 million were long positions. The move drove $BTC to retest the $59,100 low, reviving concerns of a further bearish leg.

The Coinbase Premium Index for Bitcoin has been negative since 6 May, tracking the price gap between Coinbase (USD pair) and Binance (USDT pair) and signaling weaker demand from U.S.-based investors relative to the global market. A separate liquidation heatmap referenced by analysts pointed to potential downside toward the $57,000 area in the coming days.

The 4-hour chart showed a bearish swing structure, with the drop from $74,500 to $59,100 used to plot Fibonacci retracement levels. The 50% level at $66,800 rejected the bullish advance, and the longer-term structure suggested a possible decline to $55,500 and, in a deeper scenario, $49,600 in the coming weeks.

Glassnode's weekly market report noted that spot markets led the sell-off and that derivatives markets reacted to the move rather than driving it, a pattern the analytics platform said can help set market lows in the coming months. The report added that some long-term investors were viewing current prices as attractive entry levels, though it cautioned that a market-wide accumulation phase had not yet begun.

Crypto analyst Axel Adler Jr. flagged the drawdowns of Bitcoin and Strategy [MSTR] stock, which were down 51% and 78% from their respective highs, compared with -77% and -89% at the 2022 bottom. The report noted that if Strategy were forced to sell spot Bitcoin to cover preferred dividends and debt interest, the resulting supply could weigh on an already fearful market. The company's debt carries no margin call risk, but any spot selling would risk accelerating a broader panic and potentially marking the cycle's final capitulation before a recovery.