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Bitcoin Struggles Below $65K as Liquidation Risk Looms at $57K

Bitcoin has repeatedly failed to clear $65,000 as analysts warn of significant liquidation risk from unliquidated long positions stacked at lower price levels.

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Bitcoin has extended its decline, struggling to break through the $65,000 level on multiple attempts. Analyst Joao Wedson highlighted the concentration of liquidation levels below $57,000 as a principal risk, noting that a mass unwinding of unliquidated longs at those levels could trigger further downside pressure.

Wedson drew parallels to the 2022 market cycle, when Bitcoin experienced a final sharp decline before establishing its bottom. He suggested a similar pattern could unfold this time. However, he also pointed to the potential positive side of such an event, arguing that liquidation cascades have historically preceded strong rebounds and created opportunities for accumulation at attractive prices.

Despite this optimism, current market conditions show weak demand. Over the past 30 days, spot market netflows recorded minus $412 million as coins left exchanges, yet this level of accumulation remains modest compared to behaviour in genuine bull markets. Over 50 days, netflows peaked at only minus $1.10 billion. The past 15 days saw $182 million in net selling pressure. Rising exchange reserves compound the concern: the total balance of Bitcoin held on exchanges has climbed to 2.71 million BTC, typically a signal that traders are positioning to sell rather than buy.

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