Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The Bitcoin (BTC) price has managed to rebound to approximately $61K. Here’s what to keep an eye on according to this analyst.
Over the last few days, Bitcoin’s price has experienced significant fluctuations, leading to hundreds of millions in liquidations across the market.
Market participants and analysts are now contemplating future movements, with Willy Woo offering insights into BTC’s short-term price objectives.
BTC Recovers Above $61K
Yesterday, the BTC price experienced a sharp decline, reaching a low not observed since early May.
As illustrated in the chart below, the cryptocurrency fell to around $58,400 before beginning its recovery.
BTC Price Chart | Source: Coinstats
This surge in volatility resulted in numerous liquidations within the futures market. The total reached $360 million over the past 24 hours, with the vast majority being long positions, as anticipated.
Data from Coinglass indicates that approximately $280 million of the liquidations were from long positions.
Related Posts
Willy Woo, a prominent advocate and veteran in the crypto space, analyzed the situation and outlined potential next steps for BTC.
What Lies Ahead for the Bitcoin Price?
Willy Woo noted that the recent movement was primarily driven by a cascade of long liquidations in the futures market.
He suggested that the initial target for eliminating leverage was set at $62.5K, but speculators continued to add new long positions, “just adding more fuel for more liquidations in a cascading long squeeze.”
I don't usually do short time frame price action as it's the domain of gamblers. But worth a break down of what's happening given the fear in the market…
We've been flushing out the leverage, 62.5k was the target to get most of it.
Until… https://t.co/ughwSKGYoo
— Willy Woo (@woonomic) June 24, 2024
Another contributing factor to the crash was the capitulation of miners:
“Superimposed on this liquidation squeeze, we have a post halving miners capitulation. Miners are on a BTC selling spree to pay for hardware upgrades due to the old hardware no longer being profitable. The weakest miners closing shop and being liquidated,” Woo explained.
Woo anticipated that short-term technical indicators suggest a reversal, which appears to have occurred as the BTC price climbed back to around $61K.
However, the analyst cautioned that “BTC is not out of the woods.” He emphasized the importance of observing how much speculation (i.e., leveraged positions) has been eliminated from the market.
Without clearing futures open interest, the market is not prepared for an upward movement.
In this regard, data reveals that less than 3% of the BTC open interest has been eliminated in the last 24 hours.
