Bitcoin plunged toward $60,000, triggering over $600 million in long liquidations before rebounding 5.52% to around $64,690. The sharp move coincided with reports of a ceasefire agreement between Israel and Lebanon. While some traders see the bounce as a potential bottom targeting $70,000, others warn it could be a bull trap, and a bear flag pattern on weekly charts keeps a deeper drop to $50,000 in play.
Bitcoin’s brief drop to roughly $61,300 on Thursday resulted in over $737 million in liquidated positions within 24 hours. According to data from CoinGlass, long traders absorbed the majority of these losses, with more than $617 million in bullish positions wiped out.
The subsequent 5.52% rebound to approximately $64,690 occurred alongside reports that Israel and Lebanon had agreed to implement a ceasefire. This volatile price action has led to divergent interpretations among market observers.
Trader RidaaXBT said BTC could stage a relief bounce toward the $69,000–$70,000 range. Analyst ZordXBT shared a similar view, pointing to Bitcoin’s long downside wick as a sign of aggressive buying near the lows.
Conversely, crypto trader Hitman42.eth warned that the bounce may end up trapping bulls. “BTC bulls may be celebrating too early,” they noted, suggesting the recovery might not be sustainable.
Bitcoin’s weekly chart shows a bear flag breakdown in progress, which maintains the risk of a deeper drop toward the $50,000–$52,000 area. However, the bearish scenario is not confirmed while BTC trades above its 200-week simple moving average near $61,800.
This level has historically acted as a major cycle-bottom zone in past Bitcoin bear markets. A strong rebound from the 200-week SMA could weaken the bear flag pattern, potentially setting the next upside target at $70,000.
