{"id":4207,"date":"2026-06-26T06:23:44","date_gmt":"2026-06-26T06:23:44","guid":{"rendered":"https:\/\/blog.coinsignals.net\/?p=4207"},"modified":"2026-06-26T06:23:44","modified_gmt":"2026-06-26T06:23:44","slug":"brutal-bitcoin-liquidation-cascade-could-trigger-below-59k-analyst-warns","status":"publish","type":"post","link":"https:\/\/blog.coinsignals.net\/index.php\/2026\/06\/26\/brutal-bitcoin-liquidation-cascade-could-trigger-below-59k-analyst-warns\/","title":{"rendered":"Brutal Bitcoin Liquidation Cascade Could Trigger Below $59K, Analyst Warns"},"content":{"rendered":"\n
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Bitcoin may face sharper downside pressure if a massive cluster of leveraged long positions gets liquidated below current price levels, according to market analysts.<\/p>\n\n\n\n

Analyst Reflection has warned of a severe liquidation cascade if Bitcoin drops below $59,000. Based on data from CoinGlass, more than $1.6 billion in long leverage is concentrated around the $58,000 level.<\/p>\n\n\n\n

Reflection noted that this is one of the largest concentrations of long side liquidity they have seen in years of trading.<\/p>\n\n\n\n

The warning comes as Bitcoin recently dropped to $59,175, matching its early June low and moving dangerously close to the key liquidation zone.<\/p>\n\n\n\n

Potential Wave of Liquidations<\/p>\n\n\n\n

The analyst suggested that many traders who believed the market had already bottomed may soon face forced liquidations. According to their analysis, a sharp move into this liquidity zone could trigger a classic liquidity hunt, where cascading liquidations accelerate selling pressure.<\/p>\n\n\n\n

They explained that once this pool of liquidity is cleared, selling pressure could ease significantly, which is often how major market bottoms are formed.<\/p>\n\n\n\n

Over the last 24 hours, nearly 178,000 traders have been liquidated, with total liquidations reaching $984 million, according to CoinGlass. More than 80% of those liquidations were long positions.<\/p>\n\n\n\n

Bear Market Capitulation May Not Be Over<\/p>\n\n\n\n

Another analyst from CryptoQuant, known as Darkfost, pointed out that in previous bear markets, annual realized profits eventually fall below realized losses. Historically, this marks peak capitulation and often signals the final stage of a market downturn.<\/p>\n\n\n\n

At present, annual realized profits still remain higher than realized losses, standing at $305 billion compared to $198 billion. This suggests the market may not have reached full capitulation yet, leaving room for further downside.<\/p>\n\n\n\n

According to Darkfost, losses could continue until annual realized losses overtake profits, which would indicate a more complete market reset.<\/p>\n\n\n\n

Market Outlook<\/p>\n\n\n\n

Meanwhile, analyst Sykodelic noted that only 46% of Bitcoin\u2019s circulating supply is currently in profit, a level similar to the lows seen during the 2022 bear market. However, this cycle has reached that point after a 52% decline, compared to the 75% drop seen in 2022.<\/p>\n\n\n\n

Bitcoin recently fell to its lowest level in nearly two years, briefly trading just above $59,000. During Asian trading hours on Thursday, the asset saw a slight rebound and moved back above $61,000.<\/p>\n\n\n\n

The $60,000 level remains a critical long term resistance zone. If the anticipated liquidation cascade occurs, the next major downside target could be around $54,000, which marks the previous two year low.<\/p>\n\n\n\n

Additionally, previous bear market bottoms have often included a drop below Bitcoin\u2019s realized price, which currently sits slightly above $53,000. This suggests that further downside cannot be ruled out.#crypto#cryptonews https:\/\/coinsignals.net<\/a> https:\/\/t.me\/coinsignalpublic<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Bitcoin may face sharper downside pressure if a massive cluster of leveraged long positions gets liquidated below current price levels, according to market analysts. Analyst Reflection...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4207","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/4207","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/comments?post=4207"}],"version-history":[{"count":1,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/4207\/revisions"}],"predecessor-version":[{"id":4209,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/4207\/revisions\/4209"}],"wp:attachment":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/media?parent=4207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/categories?post=4207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/tags?post=4207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}