$BTC recent volatility has once again highlighted the impact of excessive leverage in the crypto market.
A significant amount of leveraged positioning is concentrated around the $62,000 level. If Bitcoin moves sharply through this zone, it could trigger another wave of forced liquidations and add further downside pressure.
While the recent sell-off has already flushed out a substantial amount of leverage, that does not necessarily mean the market has found a definitive bottom. Historically, liquidation cascades can create temporary relief rallies before the market establishes a more durable base.
For that reason, a move below the psychological $60,000 level remains a possibility. Whether that happens or not will depend on factors such as open interest, funding rates, spot demand and broader market liquidity.$BTC
