Bitcoin’s decline to $59,307 and the liquidation of a total of $1.49 billion in leveraged positions in the last 24 hours increased the selling pressure in the market. While market analyst Bob Loukas called on investors to remain calm during this drastic move, he argued that the cryptocurrency industry remained structurally viable, but the expectation of quick gains highlighted on social media should weaken.
Liquidations increased in a short time
According to Loukas, the latest wave of sales points to a natural final cleansing process within the four-year cycle model. The analyst states that the biggest hit in this process was taken by investors who opened buy positions using leverage.
According to CoinGlass data, exchanges automatically closed Bitcoin long positions of 212,686 investors in the last 24 hours. The total size of these liquidations was $1.19 billion. In the last four-hour episode, an additional $327.56 million in positions were deleted.
It is considered that the latest retreat in the market is a final cleansing wave in the four-year cycle and particularly hits the leveraged segment.
The pressure on Strategy is discussed
According to the assessment of many experts in the market, the decline in Bitcoin may also be linked to the deteriorating situation around Strategy. While the company’s stock MSTR declined, the STRC instrument fell to $75 compared to its nominal value of $100. Strategy, managed by Michael Saylor, may have become the target of short-selling funds that want to bring the price down, due to the 847,363 BTC and debt burden it carries on its balance sheet.
Mini dictionary: Strategy, formerly known as MicroStrategy, is a US-based software company known for holding large amounts of Bitcoin on its balance sheet. MSTR refers to the share of the company, and STRC refers to the relevant capital instrument mentioned in the news and monitored at nominal value.
The downturn also made it difficult for the company to raise new capital under the same conditions. CryptoQuant analysts recommended that Strategy temporarily suspend new Bitcoin purchases in order to restore balance in its cash reserves.
| Indicator | Level |
|---|---|
| Bitcoin price | $59,307 |
| Total liquidation | $1.49 billion |
| Long position liquidation in 24 hours | $1.19 billion |
| Additional purges in the last 4 hours | $327.56 million |
| STRC price | $75 |
| STRC nominal value | $100 |
Time window for long-term bottom stands out
Loukas thinks that despite the short-term pressure on the infrastructure side, Bitcoin may have entered the long-term bottoming window. He points out that historically liquidation of overleveraged positions has been seen before a trend change.
Loukas predicts that the expectation of a rapid recovery would be premature, and that the market may remain horizontal for another 3 to 5 months before the decline phase is completed.
However, the analyst emphasizes that it would be premature to count on a strong price recovery in a short time. According to his assessment, the market may need to maintain a horizontal outlook for another 3 to 5 months in order for the decline phase to be completed. The beginning of the new cycle is expected to take shape closer to the autumn of 2026.
