Bitcoin's price has experienced a significant decline, dropping to a 53-day low of $60,000, driven by a "cascading long squeeze." According to Bitcoin analyst Willy Woo, speculators adding new long positions exacerbated the situation, leading to mass liquidations.
A long squeeze occurs when a large number of investors betting on a price rise start selling off as the price drops, triggering further declines. This recent trend has wiped out $1.16 billion in long positions, according to CoinGlass data.
Adding to the pressure is the ongoing post-halving miners' capitulation, where miners sell off Bitcoin to maintain operations and fund upgrades. This has contributed to market fear, pushing the Crypto Fear and Greed Index to its lowest in 18 months.
Despite the current downturn, some analysts maintain a bullish outlook. eToro's Farhan Badami predicts stabilization between $60,000 and $70,000, followed by a potential rally. Jan3 CEO Samson Mow believes the dip is sentiment-driven rather than due to substantial sell-offs.
The market remains watchful as it navigates these volatile conditions, with many eyes on Bitcoin's next movements.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
