Bitcoin Price Fell Below $60,000 as $450M in Longs Liquidated, Peter Schiff Renews Gold Critique

Bitcoin has suffered another sharp selloff, briefly falling below the psychologically important $60,000 level after a wave of forced liquidations erased roughly $450 million in leveraged long positions within a single hour.

The sudden plunge sent the world’s largest cryptocurrency to around $58,000, its lowest level in 21 months, and reinforced concerns that the broader correction has entered a critical phase.

The latest decline comes as Bitcoin has now fallen by nearly 30% from its May highs and more than 54% from its all-time peak, leaving investors divided over whether the market is approaching capitulation or preparing for another leg lower.

While technical indicators suggest downside momentum may be weakening, gold advocate Peter Schiff argues Bitcoin’s long-term performance continues to disappoint when measured against the precious metal.

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Bitcoin’s Liquidation Cascade Pushes BTC Into Critical Support

The immediate catalyst behind Thursday’s plunge was a rapid liquidation event across crypto derivatives markets.

According to The Kobeissi Letter, approximately $450 million in leveraged long positions were wiped out in just 60 minutes as Bitcoin broke through several key support levels.

The forced selling accelerated downward momentum, briefly sending BTC to around $58,000 before buyers stepped in.

Such liquidation cascades are common during periods of elevated leverage. As prices fall, exchanges automatically close overleveraged long positions, creating additional market sell orders that further amplify downside volatility.

The move places Bitcoin at one of its most important technical levels of the current cycle.

BTC/USD is now testing a long-term support zone between roughly $57,885 and $58,725, an area defined by the 61.8% Fibonacci retracement of Bitcoin’s rally from the 2022 lows as well as the August 2024 low weekly close.

Multiple long-term trendlines and pitchfork support also converge in this region, making it a key battleground between bulls and bears.

The fact that Bitcoin found buyers near this zone suggests long-term investors still view the area as attractive. However, a decisive weekly close below support would significantly increase the probability of a deeper correction.

Technical Indicators Suggest BTC Selling Momentum May Be Fading

Despite the severity of the recent decline, not all technical signals have turned outright bearish.

One of the more encouraging developments is the emergence of bullish Relative Strength Index (RSI) divergence across daily charts.

While Bitcoin has continued making lower price lows, RSI has failed to confirm the same degree of weakness, often an early indication that selling momentum is beginning to fade.

This divergence does not guarantee a market bottom, but historically it has frequently appeared near exhaustion phases following prolonged corrections.

Immediate resistance now sits near $62,800, corresponding with February’s closing lows. Above that, Bitcoin would need to reclaim approximately $67,250 to invalidate the current short-term bearish structure and suggest a more meaningful recovery is underway.

Failure to hold current support paints a much darker picture.

A confirmed weekly close below $57,885 would expose Bitcoin to additional downside targets around $52,200, followed by the August 2024 swing low near $49,600.

Those levels could represent the next areas where long-term buyers may attempt to establish positions if selling pressure continues.

For now, market participants are watching weekly closes rather than intraday volatility, as confirmation around current support is likely to determine Bitcoin’s next major directional move.

Peter Schiff Says Gold Continues to Outperform Bitcoin

The latest selloff also reignited one of crypto’s longest-running debates after economist Peter Schiff once again criticized Bitcoin’s performance relative to gold.

Posting on X, Schiff noted that Bitcoin has now fallen approximately 60% when priced in gold since its November 2021 peak. According to him, the comparison is particularly striking because gold itself currently trades about 28% below its own all-time high.

“Since its peak in Nov. 2021, Bitcoin is now down 60% priced in gold,” Schiff wrote.

“That’s a spectacular decline, especially given that gold itself is down 28% from its own record high. Over nearly five years, despite all Wall Street‘s hype that Bitcoin is better than gold, gold outshone it.”

Schiff has consistently argued that Bitcoin fails to function as digital gold during periods of economic uncertainty, instead behaving like a high-risk technology asset. Recent price action has strengthened that argument, with Bitcoin suffering heavy losses as investors reduced exposure to risk assets.

Bitcoin supporters, however, continue to view the current correction as part of a broader cyclical pattern. Previous bear markets have also featured declines exceeding 70% before eventually giving way to new all-time highs.