Markets
Where will the price of Bitcoin (BTC) evolve in full liquidation?
The price of Bitcoin (BTC) has barely recovered from the rout seen over the past few days.
However, the cryptocurrency seems to be threatened with further decline due not to the bearish trend but to the bullish trend of investors.
Bitcoin faces a challenge
Bitcoin price fell from $62,000 to $53,300shocking the cryptocurrency market and killing many optimistic dreams. future The market saw long liquidations amounting to $263 million in three days.
This is the second largest liquidation in the past two weeks, with the previous one occurring three months ago, in April. Typically, such large liquidations tend to calm investors down and cause them to back off to let the market cool down.
Learn more: How to Buy Bitcoin (BTC) and Everything You Need to Know
Bitcoin Long Liquidations. Source: Coin glass
However, BTC holders don’t seem to agree with this view. The drawdown is believed to be due to the impact of the bearish speech delivered by Federal Reserve Chairman Jerome Powell earlier this week. Investors are therefore expecting a quick recovery and are ready to take advantage of it.
Analyst Willy Woo Underlines He explains the difference between buying futures and buying cash. He points out that the former produces a bearish environment and that this could lead to additional losses.
According to the Bitcoin Open Value Oscillator, approximately half a million long-term contracts are still open in the futures market. If the price of Bitcoin falls further, these long positions could be liquidated. This will result in a prolonged period of decline for BTC.
BTC Price Prediction: Model Validation
Bitcoin price, which is trading at $56,961 at the time of writing, is stabilizing after nearly dropping to $53,300 yesterday. The cryptocurrency has yet to realize the expected 17% decline resulting from the double top formation four months ago.
This prediction calls for a drop to $50,900, which will lead to massive long-term sell-offs as mentioned above. BTC Loses $55,000 Supportit would become more likely.
Learn more: Bitcoin (BTC) Price Prediction 2024/2025/2030
On the other hand, if Bitcoin Price Manages to Bounce Back From $55,000 and moving back to $58,800 as support, the recovery could begin. This would allow a rise to $60,000 to invalidate the bearish thesis.
Disclaimer
In accordance with the Trust Project This price analysis article is provided for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our Terms and conditions, Privacy PolicyAnd Disclaimer have been updated.