Why Did Bitcoin Price Drop to $60,000? Analyst Gave Two Reasons

Bitcoin (BTC) analyst commented on why the price may have dropped to $ 60,000.

According to CoinGecko data, the Bitcoin price briefly dropped to just under $60,000 in the past hours.

Effect of positions taken from Bitcoin

“Speculators continued to increase their long positions, providing the fuel that led to further liquidations during the long squeeze,” said analyst Willy Woo.

In the case of a long position squeeze, investors who have taken a long position in the market begin to sell to minimize their losses when the price starts to fall, and this causes the decline to gain even more strength.

The selling pressure in Bitcoin is not over

Miners increased the selling pressure on Bitcoin after the halving. “Miners are selling Bitcoin to replace their equipment because old equipment is no longer profitable,” Woo said. "Weak miners are closing shops and going into liquidation," he commented.

“Miners' capitulation is one of the most reliable indicators that a rally will begin, putting an end to periods of sideways movement or bearishness,” the analyst said.

Stating that speculation may have decreased as the positions in the market became liquid, Woo wrote that the price is likely to have bottomed at this stage.