High leverage and liquidations increased volatility, with key support now seen near $55,000 – $60,000.
Bitcoin recently dropped to its lowest level in 16 months, falling into the low-$60,000 range during heavy selling. The price briefly touched near $60,000 before recovering to above $70,000 within 2 days. This sudden drop erased a huge part of the gains made during the late 2025 rally, when BTC was trading close to $100,000. The decline surprised many market players, emphasizing the cryptocurrency market’s volatility.
The sell-off happened quickly, and thousands of dollars were moved in just a few hours. Liquidations in the futures market added more pressure. When leveraged traders were forced to close their positions, it created a chain reaction, pushing prices even lower. At the same time, short-term traders stepped in to buy the dip, causing sharp rebounds. This back-and-forth made the market extremely volatile and confusing for many participants.
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