Here’s Why Bitcoin (BTC) Price Correction Isn’t Over, $54K Coming?

Earlier at present, the world’s largest cryptocurrency Bitcoin (BTC) took a dive beneath $59,000 earlier than bouncing again above the essential assist of $60,000. In style crypto analyst Willy Woo explains that the current Bitcoin value correction has managed to flush out extreme leverage out there, nonetheless, we’re not executed but.

Bitcoin Worth Correction and Lengthy Liquidations

The Bitcoin value correction was exacerbated following the Mt. Gox Bitcoin repayment announcement on Monday, June 24. In style crypto analyst Willy Woo famous that the market has been flushing out extra leverage taking out the preliminary goal of $62,500.

Regardless of 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 at present.

Together 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 issue has spiked significantly. This led to the liquidation of the weakest miners compelled to close down their outlets.

BTC Quick-Time period Reversal However $54,000 Seemingly

Woo acknowledged that technical indicators are stating a Bitcoin value reversal. Bitcoin has behaved precisely as per Woo’s prediction, reversing from the lows beneath $59,000, and at the moment buying and selling at $61,500 ranges.

Nonetheless, the analyst has additional cautioned that Bitcoin remains to be not totally out of the woods. The market nonetheless wants to determine how a lot speculative extra has been flushed out thus far. With out a vital discount within the BTC futures place, the Bitcoin value gained’t transfer upward sustainably.

$54k is the following layer of liquidations. And to try this, it’s thus far beneath quick time period holders value that it will tip BTC right into a bearish section. (STH value is a line within the sand between bull and bear regimes.)

That is exhausting to do throughout the macro construction. pic.twitter.com/fjOk2Ss2wC

— Willy Woo (@woonomic) June 24, 2024

Woo believes there’s a ok likelihood that Bitcoin can see new lows and that the following key degree to look at for can be $54,000 the place one other layer of liquidations would happen. Dropping to this degree will push BTC beneath the value level of short-term holders, thereby sometimes dipping into the bearish section.

Woo additional emphasised that this degree serves as a essential boundary between the bearish and the bullish market regimes and falling beneath this may be essential contemplating the present macro setup.