- Bitcoin plunged near $61,300, triggering over $600 million in long liquidations before a 5.52% rebound.
- The bounce coincided with Iran-war-oil-jumps-with-talks-stalemate-2026-06-03/” rel=”nofollow noopener” target=”_blank”>reports of an Israel-Lebanon ceasefire agreement.
- Traders debate if the rebound is a real bottom or a temporary relief bounce, with targets ranging from $70,000 to $50,000.
- A bear flag pattern on the weekly chart keeps the risk of a deeper drop toward $50,000 alive.
- The 200-week simple moving average near $61,800 remains a critical support level for Bitcoin’s long-term trend.
Bitcoin experienced a volatile sell-off on Thursday, briefly plunging toward $61,300 before staging a sharp 5.52% recovery to around $64,690. This price action liquidated over $617 million in leveraged long positions, according to data from CoinGlass, highlighting the aggressive bullish positioning that preceded the drop.
Consequently, the swift rebound prompted some traders to call for a potential market bottom. Trader RidaaXBT suggested Bitcoin could stage a relief bounce toward the $69,000–$70,000 range, implying sellers may be exhausted.
However, other analysts warned that the bounce could be premature and trap bullish traders. Meanwhile, the broader technical picture shows a bear flag breakdown in progress on Bitcoin’s weekly chart. This pattern keeps the risk of a deeper correction toward the $50,000–$52,000 area alive.
Nevertheless, the bearish scenario is not confirmed as long as Bitcoin holds above its 200-week simple moving average near $61,800. This level has historically acted as a major cycle-bottom zone. A strong rebound from this support would weaken the bear flag pattern, potentially setting the stage for a retest of the $70,000 resistance level.
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