Bitcoin’s 200-week moving average, currently around $61,700, is the key level the market is watching right now. This line has marked the bottom of every major Bitcoin bear market since 2015, and it held again this week—at least for now.
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A Classic Bottom Signal — Or Just a Pause?
The selloff pushed Bitcoin down to about $61,300 before buyers stepped in and drove the price back above $64,750, a recovery of more than 5%. Reports say the rebound came alongside news that Israel and Lebanon had agreed to a ceasefire, though the price move was already being driven by a massive liquidation event. According to data from CoinGlass, over $740 million in Bitcoin positions were wiped out in 24 hours. Long traders took the biggest hit, with more than $623 million in bullish bets liquidated as the price dropped.
Bear Flag Still Looms
Bitcoin’s weekly chart shows a bear flag breakdown that is still playing out. The pattern suggests a potential drop to the $50,000–$52,000 range, and the setup has gained weight from rising trading volumes during the downward move. BTC has so far failed to reclaim the upper trend line of the flag. That failure keeps the bearish scenario technically intact, even after Thursday’s bounce.
Some traders see things differently. Analyst ZordXBT pointed to the long lower wick on Bitcoin’s candle as a sign that buyers stepped in strongly near the lows. Trader RidaaXBT called for a short-term relief bounce toward the $69,000–$70,000 range, arguing that the liquidation wave may have cleared out enough near-term selling pressure to allow a recovery.
$BTC Just like that, BTC dumped to the 61k level, which is most likely the local bottom for now. Expecting a relief bounce from here, with a potential move back toward the 69k–70k region. https://t.co/q5VGRG2Id1 pic.twitter.com/83U7H7Phog — Ridaa (@RidaaXBT) June 4, 2026
Not Everyone Is Convinced
Not all market watchers are buying the optimism. Trader Hitman42.eth warned that bulls might be walking into a trap, suggesting the bounce could lure in new long positions before another drop.
everyone cheering this $3k bitcoin:native bounce is completely ignoring the graveyard they just walked over. $600m in longs just got vaporized in 60 minutes flat. we tapped $61k right above the february lows and bounced. catching a falling knife after a structural flush is… pic.twitter.com/5QpE8Vv8Rc — hitman42.eth (@ihitman42) June 4, 2026
The 200-week moving average remains the key dividing line. As long as BTC holds above $61,700, the bear flag breakdown is not confirmed. A convincing recovery from that level would put $70,000 back in play as the next meaningful price target.
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Bitcoin has tested the 200-week average at major lows before—in 2018 and again during the March 2020 crash—and bounced sharply each time. Whether this week’s touch of that level marks a similar turning point, or just a brief pause before a deeper drop, remains an open question.
Featured image from Gemini, chart from TradingView
Frequently Asked Questions
Here is a list of FAQs about the massive 623 million Bitcoin long liquidation event written in a natural tone with clear simple answers
BeginnerLevel Questions
1 What does Bitcoin longs took a massive hit mean
It means a huge number of traders who bet that Bitcoins price would go up lost their money because the price suddenly dropped instead
2 What exactly is a liquidation
A liquidation happens when a traders bet goes so wrong that the exchange automatically closes their position to prevent them from owing even more money Its like a forced sale to cover losses
3 How can 623 million in positions just disappear
They dont disappearthey are lost by the traders When the price drops fast the exchange sells their collateral to cover the loss That 623 million is the total value of all those forced sales
4 Who lost that 623 million
Individual traders who were using borrowed money to bet that Bitcoins price would rise When the price fell their positions were automatically closed and they lost their initial deposit
5 Why did Bitcoins price drop so suddenly
It can be triggered by a big sell order bad news or simply many traders panicking at once Once the price starts falling it triggers more liquidations which makes the price drop even fastera cascade
AdvancedLevel Questions
6 What role did leverage play in this 623 million liquidation event
Leverage is the main reason the number is so high Traders using 10x 20x or even 50x leverage only need a small price drop to get fully liquidated High leverage turns a small price move into a total loss
7 Is this a sign that the Bitcoin market is crashing
Not necessarily Large liquidations can happen in a bull market or a bear market Its often just a long squeezea sharp drop that wipes out overconfident bulls before the price recovers But it can also signal a bigger trend change if its followed by more selling
8 Could this liquidation event have been predicted
Not exactly but traders watch the open