 ▲ Bitcoin (BTC) |
Multiple foreign media outlets, including Cointelegraph and Crypto Potato, reported that the trading price of Bitcoin (BTC) temporarily fell below $60,000, but the price recovered quickly.
Leading analyst Willy Woo recently cited a long squeeze as the reason for Bitcoin's downward trend, including concerns about the collapse of the $60,000 support line and hitting a low on the 53rd. This is due to the continued selling trend of virtual asset miners.
A long squeeze is a phenomenon that occurs when many long-position investors who bet on a price rise during a falling price trend begin to sell their holdings to reduce losses. The long squeeze phenomenon causes the price to fall further, which has a knock-on effect on other long position holders.
Willy Wu also mentioned that miner capitulation is underway after the halving. In theory, in the surrender stage, when the price of Bitcoin falls below a certain threshold and mining activities cannot record profits, miners stop operating their hardware and sell mining equipment and coins they own.
“There was a trend of miner surrender after the halving as liquidity pressure was excessive,” Wu explained.
CoinGlass released data analysis results showing that long positions worth $1.16 billion were liquidated as the Bitcoin trading price fell below $60,000. On the other hand, short positions rose 3.73%, resulting in the liquidation of $2.18 billion. This is another sign that traders are more confident that prices will fall.
UToday, a virtual asset news platform, mentioned the possibility of Bitcoin falling to $57,000. He then said that when the price falls below $57,000, the 200-day exponential moving average (EMA), which served as a support line, will be invalidated.
In addition, it was predicted that as Bitcoin enters the bearish zone in earnest, the selling flow will worsen and additional coin liquidations will occur. He added that if the selling trend shows no signs of stopping, there is a possibility that it will fall further to $50,000.
