Bitcoin (BTC) faced a significant setback early Monday as its price was rejected just below the $65,000 mark, leading to a wave of liquidations across the market. With over $160 million wiped out and more than 60,000 traders affected, the price rejection has reignited concerns about BTC’s short-term outlook. The rejection comes after a promising rally in the past few days, fueled by economic shifts in the U.S., but now the cryptocurrency sits at a critical crossroads as it battles to regain upward momentum.

BTC’s Climb to $65,000: A Bullish Surge Stalls

Bitcoin’s upward trajectory started last week, buoyed by the U.S. Federal Reserve’s tells of a 0.5% cut in interest rates. This significant monetary policy shift had an immediate effect on BTC’s price, as investors turned bullish on the asset. By Friday, Bitcoin had surged past the $64,000 mark, stoking optimism that it might break through its next major resistance at $65,000.

The weekend, however, brought about a period of sideways trading. Bitcoin remained relatively stable, hovering around $63,000 to $63,500, as market participants prepared for another potential move to the upside. Many analysts had anticipated that a successful close above $65,000 could open the door for a sustained rally, possibly even setting the stage for a new all-time high before the end of the year.

Monday Morning Rejection and Subsequent Volatility

As the new week began, Bitcoin showed renewed signs of life. During the early hours of the Monday Asian trading session, BTC briefly spiked, reaching a four-week high of $64,800 on Bitstamp. Traders eagerly watched as the asset neared the psychologically important $65,000 level, which had proven to be a significant resistance point in the past.

However, just as quickly as BTC surged, it was met with resistance from sellers. The bears took control, halting the rally and sending Bitcoin back down by nearly $1,000 within hours. At the time of writing, Bitcoin is trading around $63,800, unable to maintain the momentum needed to break through $65,000.

Liquidations Surge Amid Market Turbulence

The sharp rejection at $65,000 has had a ripple effect across the market, particularly impacting over-leveraged traders. According to data from Coin Glass, the swift price movements led to the liquidation of more than 60,000 traders in a span of 24 hours. The total value of these liquidated positions exceeded $160 million, with Bitcoin accounting for a significant portion of this figure. The largest single liquidation involved Ethereum (ETH), valued at $2.73 million, and took place on Binance.

Liquidations of this magnitude are not uncommon in the cryptocurrency market, especially during periods of heightened volatility. Traders using high leverage—essentially borrowing to amplify their positions—are particularly vulnerable when the market makes abrupt moves. As Bitcoin bounced between $62,400 and $64,800, many traders were caught off guard, leading to widespread liquidations.

Altcoins Feel the Impact, But Some Outperform

Bitcoin’s sudden rejection has also affected the broader cryptocurrency market. Several major altcoins mirrored Bitcoin’s price action, experiencing similar volatility. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, briefly dipped but has since regained ground, trading above $2,650 with a modest daily gain of over 2%. Binance Coin (BNB) also performed well, nearing the $600 mark.

Other altcoins such as Solana (SOL), Cardano (ADA), and Ripple (XRP) followed Bitcoin’s lead, showing signs of volatility but largely maintaining their recent gains. The altcoin market remains cautiously optimistic, although many traders are keeping a close eye on Bitcoin, as its price movements often dictate broader market trends.

What’s Next for Bitcoin?

As Bitcoin sits just below the $65,000 resistance level, market participants are left wondering what’s next for the leading cryptocurrency. On one hand, BTC’s ability to quickly recover from sharp price drops in the past week suggests that bulls still have some control. On-chain metrics remain positive, with data showing a decline in BTC supply on centralized exchanges, indicating that investors may be moving their holdings to long-term storage rather than selling.

However, the rejection at $65,000 is a clear indication that Bitcoin is not out of the woods yet. If the asset fails to regain momentum and break through this critical resistance level soon, it could face further downside risks. Analysts point to the $61,000 to $62,000 range as the next significant support level. Should Bitcoin fall below these levels, it could trigger another wave of selling, potentially driving the price lower in the short term.

Conversely, if Bitcoin can mount another rally and close above $65,000, it may set the stage for a more sustained move upwards. Some analysts believe that if BTC can establish itself above this level, a push towards $70,000 or even higher is not out of the question. For now, traders will likely continue to watch closely for signs of either a breakout or further consolidation.

Conclusion: A Critical Moment for BTC

Bitcoin’s latest price rejection at $65,000 has underscored the ongoing volatility in the cryptocurrency market. With over $160 million in liquidations and more than 60,000 traders affected, the market remains on edge as BTC battles to overcome its next major resistance level. While the long-term outlook for Bitcoin remains bullish, particularly with positive on-chain data and supportive macroeconomic conditions, the short-term could see further turbulence as BTC navigates key price levels.