The incoming selling pressure from the Mt. Gox repayment could still cause Bitcoin’s price to fall below the psychological $60,000 mark.

Bitcoin (BTC) recently saw the liquidation of over $122 million in leveraged long positions as its price dipped below the $61,000 threshold, raising concerns about potential further declines. The liquidations occurred following an over 5% intraday drop in Bitcoin's price, briefly falling below $61,000 at 1:25 pm UTC on June 24. BTC is down over 7% on the weekly chart.

Leveraged positions can indicate key price levels for an asset, with potential liquidations looming if certain thresholds are breached. According to CoinGlass, a move below the $60,500 mark could lead to over $180 million in liquidations across exchanges.

The price drop coincides with an announcement from collapsed crypto exchange Mt. Gox regarding the start of repayments for its users, with over $9.4 billion worth of Bitcoin owed to approximately 127,000 creditors. This influx of funds could introduce significant selling pressure to the market.

In addition, a German government-labeled wallet moved nearly 6,500 BTC on June 19, adding to the potential selling pressure. The wallet has held nearly 50,000 BTC since February 2024, worth over $3 billion at Bitcoin's current price.

Bitcoin's price has become the most oversold since it was trading at $26,000, according to the relative strength index (RSI), a popular momentum indicator. On the daily chart, Bitcoin's RSI has reached 28, signaling oversold conditions. The last time Bitcoin's RSI was below 30 was in August 2023, during the $26,000 price level.