Bitcoin Rebounds After 21-Month Low, Tops $60,000 as Leverage Risks Persist

Bitcoin rebounded after sliding to its lowest level in 21 months, but leverage data is still signaling caution.

Cointelegraph reported on July 1 that Bitcoin fell as low as $57,737 during the session, its weakest level in 21 months, before recovering to $60,200. The token was up about 2.7% over the past 24 hours. Ether rose 3% and Solana gained 4.85%.

Despite the rebound, market sentiment remains deeply depressed. The Crypto Fear and Greed Index stood at 11 out of 100, leaving the market in the "extreme fear" zone. Bitcoin is still down by about one-third this year.

Fund flows also remained weak. US spot-Bitcoin exchange-traded funds have seen outflows exceed inflows in recent weeks, and total withdrawals in June reached $4.5 billion, the largest monthly outflow since the products were launched.

On-chain data, however, showed some positive signals. Long-term holders bought about 270,000 Bitcoin over the past two weeks, suggesting some large investors are treating the recent decline as a buying opportunity.

Leverage metrics remain a source of concern. Funding rates stayed positive for a third straight day even as Bitcoin fell to fresh lows. When long positions build during a weak price trend, another drop can set off a chain of forced liquidations.

HighBlock data showed leveraged positions are now concentrated most heavily between $57,000 and $60,500. Forced liquidations could begin in earnest if Bitcoin rises above the $61,000 to $62,000 range or falls below the $55,000 to $56,000 range. Cointelegraph maintained a neutral 24-hour outlook, saying a meaningful trend reversal would require both further price gains and an increase in leveraged positions.