Bitcoin liquidated more than $600 million in long positions as it plunged to around $60,000.

Cointelegraph reported on June 4 that bitcoin fell to about $61,300 before rebounding 5.52 percent to around $64,690.

The sharp swing pushed bitcoin position liquidations above $737 million over 24 hours. Long liquidations were tallied at more than $617 million. That indicates bullish bets had built up aggressively before the drop.

Reports that Israel and Lebanon agreed to a ceasefire and would implement it were cited as a catalyst for the rebound. Markets were divided on whether the bounce marked a trend reversal or a short-term pullback after leverage was unwound.

Some traders leaned toward the possibility a bottom had been confirmed. RidaaXBT said bitcoin could stage a relief rally to the $69,000 to $70,000 range. The trader judged the sharp drop accompanied by liquidations may have absorbed a significant portion of short-term selling. JodXBT also pointed to a long lower wick, saying strong buying flowed in near the lows.

Others urged caution. Crypto trader Hitman42.eth warned bitcoin bulls may be taking relief too early. The trader said the rebound could lure in bullish positions again and then turn into a trap.

Technically, bearish signals on the weekly chart remain. Bitcoin is still moving through a weekly bear-flag breakdown, and if the setup holds it leaves open the risk of a further drop to the $50,000 to $52,000 range. It has not regained the upper trendline, and rising volume has added to downside pressure.

Still, the 200-week simple moving average near $61,800 was presented as a key inflection point. The level also served as a major cycle low during bear markets in 2015, 2018 and 2020. If bitcoin holds above the line or rebounds strongly, the bear-flag breakdown scenario could weaken. In that case, a retest of $70,000 was cited as the next upside target.

That leaves markets focusing on whether bitcoin can defend the 200-week moving average and sustain the rebound. Whether the post-liquidation bounce fades as a short-term relief rally or develops into a real bottom signal is increasingly likely to be decided around this level.