"Bitcoin enters a stabilization phase after plunging to the $60,000 level"

Bitcoin (BTC) rebounded after falling to the $60,000 level, but analysis suggests that rather than a clear trend reversal, it has entered a stabilization phase following a major correction.

On the 9th, global digital-asset (cryptocurrency) exchange Bitfinex said in its weekly research report that "this decline, with the drawdown exceeding 52% from the peak in October last year, is viewed as the deepest correction of the current cycle." Bitcoin shifted into a downtrend after breaking below key support levels in succession, including the short-term holders’ average cost basis and the year-to-date market price.

The report said the correction was not a forced-liquidation-driven plunge, but the result of accumulated spot selling regardless of price levels. In the process, Bitcoin recorded the largest one-day drop in market capitalization on record, and the price briefly slid to as low as $60,100.

On-chain indicators showed daily realized losses exceeded $1.2 billion, interpreted as a signal approaching the late stage of the correction. At the same time, global open interest fell by about 50% from its peak, indicating that a significant portion of leverage has been flushed out.

Bitfinex assessed that "large-scale stop-loss selling and deleveraging are unfolding simultaneously, and the market is entering a gradual stabilization phase." It added that "for the time being, the $60,000–$74,000 range is likely to serve as the key battleground; whether this zone becomes the foundation for a medium-term rebound or a consolidation area ahead of further downside will depend on subsequent flows and the macro backdrop," it said.