Bitcoin fell sharply to around $63,000 after a cascade of forced selling wiped out roughly $58 million in leveraged long positions within a single hour. The rapid decline underscored the destructive power of leverage when the market turns suddenly, with the sell-off accelerating as traders holding borrowed funds were automatically liquidated.
The price drop, which took Bitcoin as low as $63,000 from a recent attempt to hold above $65,000, coincided with three consecutive days of net outflows from U.S. spot Bitcoin ETFs. Combined outflows over July 23, 24, and 27 reached approximately $476.9 million, reversing a modest weekly inflow that had briefly suggested renewed institutional demand.
On a technical basis, Bitcoin is now testing its 50-day simple moving average at $63,275. A daily close below that level would weaken the support cluster between $63,300 and $63,600 and expose the $62,000 area. Analysts note that the liquidation event flushed out over-leveraged longs, potentially clearing some speculative pressure, but the market remains cautious. The next key upside level to confirm a recovery is $67,370, which remains untested.
The one-hour liquidation burst is a textbook example of how involuntary, clustered selling can deepen short-term volatility. While the flush may have reset positioning, the ongoing ETF outflows add to the bearish sentiment, leaving traders focused on whether the 50-day SMA will hold or whether the decline can extend toward $62,000.
