Bitcoin briefly plunged to the $64,300 level late Sunday after a sharp wave of selling erased nearly $3,300 from its price in under two hours, intensifying volatility across the broader crypto market.
Key Takeaways
- Bitcoin plunged from $67.6K to $64.3K in under two hours.
- $481M in liquidations, mostly long positions.
- Trump’s 15% tariff plan triggered a risk-off sell-off.
- Whale selling and ETF outflows added pressure.
The sell-off dragged BTC from around $67,600 to a local low near $64,300 before buyers stepped in, helping the asset stabilize just above $65,000. The sudden drop triggered widespread liquidations and wiped out hundreds of millions in leveraged positions within 24 hours.
Liquidations Surge as Longs Get Wiped Out
Data from derivatives markets shows total 24-hour liquidations climbed to roughly $481 million, with long positions accounting for the overwhelming majority – more than $430 million. Short liquidations remained comparatively limited at under $50 million.
A liquidation heatmap highlights Bitcoin leading the cascade with over $225 million in forced closures, followed by Ethereum at nearly $116 million. The imbalance suggests the move was largely driven by overleveraged bullish traders caught offside by the rapid downside move.
Open interest also contracted sharply, signaling that speculative positioning was flushed out during the drop. Analysts noted that many longs were liquidated as BTC lost the key $65,000 support level, accelerating the decline.
Tariff Shock Sparks Risk-Off Move
The crypto pullback coincided with renewed macroeconomic pressure after President Donald Trump announced plans to raise global tariffs to 15%, up from the previously proposed 10%. The move fueled a broader risk-off sentiment across financial markets, with investors rotating out of high-volatility assets.
Bitcoin, often treated as a high-beta risk asset during periods of uncertainty, reacted swiftly. The tariff escalation increased concerns about global trade friction and inflationary pressure, prompting traders to reduce exposure.
Whale Activity and Thin Liquidity Add Fuel
On-chain data pointed to increased activity from large holders, commonly referred to as whales. Several sizable transfers to exchanges were recorded ahead of and during the drop, suggesting distribution into strength before the breakdown.
Market participants also highlighted weak weekend liquidity as a key factor. With thinner order books, even moderate selling pressure can lead to outsized price swings. This vulnerability amplified the impact of macro headlines and liquidation cascades.
Institutional Outflows Persist
Adding to the pressure, spot Bitcoin ETFs have experienced sustained outflows in recent sessions. Market observers report that some institutional capital has rotated into traditional safe-haven assets such as gold, as well as high-growth AI-related equities.
The combination of ETF redemptions, leveraged flush-outs, and macro uncertainty created a perfect storm that briefly pushed Bitcoin below $65,000 for the first time since early February.
For now, traders are watching whether the $65,000 area can hold as support. A sustained recovery above $67,000 could signal stabilization, while further weakness may expose lower liquidity pockets in the mid-$60,000 range.
Technical Analysis
On the 1-hour chart, Bitcoin printed a sharp bearish candle that sliced through short-term support near $67,000 and briefly broke below $65,000 before bouncing.
MACD has crossed deeper into negative territory, with the histogram expanding to the downside – signaling strengthening bearish momentum in the short term. Meanwhile, RSI dropped into oversold territory near 30 before recovering toward the low-40s, suggesting a short-term relief bounce is underway but not yet confirming a trend reversal.
TradingView’s daily indicators show a strong sell bias overall, with moving averages flashing strong sell signals, while oscillators remain mostly neutral. This indicates that broader trend pressure remains to the downside despite the intraday rebound.
Key levels to watch are $65,000 as immediate support. A sustained break below could open the door toward the $63,000-$62,000 zone. On the upside, reclaiming $67,000 would be the first sign that bulls are regaining short-term control.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/bitcoin-briefly-dropped-below-65000-here-is-why/