Bitcoin experienced a significant decline on Thursday, slipping below the $63,000 mark as selling pressure intensified across the cryptocurrency market. The leading digital asset tumbled to its lowest level since February, extending a sharp downtrend that began in May. The selloff was fueled by escalating geopolitical tensions between the United States and Iran, which dampened investor sentiment in risk-on assets. According to market observers, Bitcoin’s market capitalization has eroded by roughly $400 billion since mid-May, with over $1.6 billion in leveraged crypto positions liquidated within a 24-hour span.
The breakdown below key support levels at $72,000 and $68,000 left Bitcoin vulnerable to further downside. The price now hovers around the psychologically important $60,000 to $64,000 zone, a region that historically acted as demand. A failure to hold this area could open the door to deeper declines. Data from crypto.news shows Bitcoin was trading near $63,753 at press time, down nearly 5% on the day, with a session low of $61,557. The broader weekly decline has erased approximately 16% of Bitcoin’s value, with buyers yet to show signs of a decisive recovery.
The derivatives market added to the bearish narrative, as widespread liquidations amplified the spot selloff. Coinglass reported that over $1.6 billion in crypto-linked leveraged positions were forcibly closed in the past day. Such events occur when exchanges liquidate positions due to insufficient collateral, often exacerbating price declines. The liquidation wave coincided with a broader risk-off mood as U.S.-Iranian hostilities escalated, stalling ceasefire negotiations. This geopolitical uncertainty has weighed on assets from equities to cryptocurrencies.
Analysts are now eyeing potential support levels at $60,000, $55,000, and $50,000. Captain Faibik highlighted that Bitcoin is resting above a major eight-year trendline, noting that a successful defense and base-building by bulls could signal the start of another bullish phase. However, he cautioned about a possible liquidity grab in the $54,000 to $55,000 range before a sustained recovery. Ali Charts pointed to the MVRV pricing bands, suggesting the next strong support lies between $54,000 and $50,000. Ki Young Ju of CryptoQuant remarked that the current distribution phase resembles a massive handover, with the average cost basis for Bitcoin investors around $53,000. Historically, bear markets only ended after prices fell below the realized price, a level he thought would be hard to revisit given institutional inflows.
Technical indicators paint a bleak picture. The Relative Strength Index (RSI) sits at 18.69, deep in oversold territory, indicating extreme selling momentum. However, a reversal is not confirmed until RSI climbs back above 30, with a move above 50 signaling stronger buyer control. The gap between the current RSI and its moving average at 35.57 underscores the rapidity of the selloff. The Moving Average Convergence Divergence (MACD) remains bearish, with the MACD line at -2,917.77 below the signal line at -1,584.86, and a negative histogram of -1,332.92.
On-chain data reveals robust selling activity. Arab Chain reported that the Binance Cumulative Volume Delta (CVD) Confirmation Score reached 0.80, a four-month high, as Bitcoin traded in the mid-$60,000 range. CVD tracks the net balance between buying and selling volume, and a high reading during a price drop suggests that the selloff is backed by genuine volume, not just thin liquidity. This reduces the likelihood of a quick rebound. For Bitcoin to alleviate bearish pressure, it would need to reclaim $64,000 and then $68,700. A clean break below $60,000 could shift focus to $55,000 and $50,000 as the next major support levels.