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Although Bitcoin’s price has shown a partial recovery in recent days, a cautious atmosphere continues to dominate the market. Despite attempts to move higher, fluctuations in trading volumes and positioning in derivatives markets signal that fragility remains. According to experts, the $60,000 level is not only a psychological threshold but also a critical breaking point that could trigger large-scale liquidations. A potential drop below this level—especially in leveraged markets—could activate stop-loss orders and force position closures. Such a scenario may intensify selling pressure, spark a chain reaction decline, and significantly increase short-term volatility.
$1.24 Billion in Put Option Exposure
Data from crypto derivatives exchange Deribit shows approximately $1.24 billion in open interest in put options that would gain value if Bitcoin falls below $60,000. This indicates that investors have established substantial downside hedging strategies around this level. Put options give holders the right to sell an asset at a predetermined price before a certain date. If Bitcoin drops under $60,000, sellers of these options may need to hedge their exposure by selling in the spot or futures markets. Such hedging flows could amplify downward pressure and potentially trigger a cascading market reaction.
200-Week Moving Average Near $58,000
Just below $60,000 lies the 200-week moving average, positioned around $58,000. Technical analysts consider this level one of the strongest long-term support zones. Maxime Seiler, CEO of digital asset trading firm STS Digital, commented:
“Many Bitcoin-collateralized loan agreements foresee automatic liquidation of collateral if prices fall into these ranges.”
Forced liquidation mechanisms of this kind could rapidly unwind leveraged positions and deepen selling pressure.
$40,000 Scenario on the Table
IG Australia analyst Tony Sycamore describes the $60,000–$58,000 range as a “critical zone.” According to Sycamore, a sustained break below this region could open the door to a pullback toward the upper $40,000 range. Meanwhile, global bank Standard Chartered recently cut its end-2026 Bitcoin forecast to $100,000, reducing its previous projection by two-thirds. Analysts at the bank also noted that Bitcoin could fall toward the $50,000 level before stabilizing. Augustine Fan, partner at Hong Kong-based crypto options platform SignalPlus, stated that most investors he has spoken to recently are positioned bearishly in the short term. This suggests that negative expectations may already be priced into the market to a considerable extent.
Is $60,000 Bitcoin’s Fault Line?
In the Bitcoin market, the $60,000 level stands out as a crucial technical, derivatives-driven, and psychological threshold. Beneath it lies heavy put option exposure, collateral liquidation risks, and leveraged position vulnerability. A decisive breakdown could trigger chain liquidations and a sharp wave of selling. Although the fragmented and largely offshore structure of the crypto market makes it difficult to define an exact liquidation threshold, the $60,000 mark remains the primary short-term reference point that could determine Bitcoin’s next directional move.
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