Earlier as we speak, the world’s largest cryptocurrency Bitcoin (BTC) took a dive below $59,000 earlier than bouncing again above the essential help of $60,000. Popular crypto analyst Willy Woo explains that the current Bitcoin worth correction has managed to flush out extreme leverage out there, nevertheless, we’re not performed but.
Bitcoin Price Correction and Long Liquidations
The Bitcoin worth correction was exacerbated following the Mt. Gox Bitcoin repayment announcement on Monday, June 24. Popular crypto analyst Willy Woo famous that the market has been flushing out extra leverage taking out the preliminary goal of $62,500.
Despite this, speculators have continued so as to add new lengthy positions resulting in additional liquidations in a cascading lengthy squeeze. this led to the BTC price dropping additional to $58,000 earlier as we speak.
Along with the liquidation squeeze, Woo factors out that the impact of post-halving Bitcoin miner capitulation nonetheless continues to hover round. As we all know, Bitcoin miners have been promoting closely to finance their {hardware} upgrades as mining problem has spiked significantly. This led to the liquidation of the weakest miners compelled to close down their outlets.
BTC Short-Term Reversal But $54,000 Likely
Woo acknowledged that technical indicators are mentioning a Bitcoin worth reversal. Bitcoin has behaved precisely as per Woo’s prediction, reversing from the lows below $59,000, and at the moment buying and selling at $61,500 ranges.
However, the analyst has additional cautioned that Bitcoin remains to be not fully out of the woods. The market nonetheless wants to determine how a lot speculative extra has been flushed out to date. Without a big discount within the BTC futures place, the Bitcoin worth gained’t transfer upward sustainably.
$54k is the subsequent layer of liquidations. And to try this, it’s to date under quick time period holders worth that it could tip BTC right into a bearish section. (STH worth is a line within the sand between bull and bear regimes.)
This is difficult to do inside the macro construction. pic.twitter.com/fjOk2Ss2wC
— Willy Woo (@woonomic) June 24, 2024
Woo believes there’s a adequate likelihood that Bitcoin can see new lows and that the subsequent key stage to observe for could be $54,000 the place one other layer of liquidations would happen. Dropping to this stage will push BTC under the worth level of short-term holders, thereby usually dipping into the bearish section.
Woo additional emphasised that this stage serves as a crucial boundary between the bearish and the bullish market regimes and falling below this may be crucial contemplating the present macro setup.
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