#Bitcoin -#analytics Willy Woo, known for his long-term market forecasts, broke his usual silence on short-term forecasts to respond to $BTC 's recent 7.4% price collapse. explaining this as a combination of leverage draining and miners capitulating.
In X's latest post (previously #twitter ), the analyst offered an in-depth analysis of the current volatile state of the Bitcoin market, specifically the attributed fall from the intraday high of $63,292 to a retest of the low of $58,601.
The analyst explained that the market is going through a process of unleveraging, with billions of dollars worth of long positions being liquidated. He noted that Bitcoin's correction to the $62,500 area was a critical target for liquidating most leveraged positions.
However, based on market data, speculators continued to open new long positions, exacerbating the situation and leading to a cascading long squeeze. The analyst noted that this downward pressure led Bitcoin to the $58k cluster, which has now been broken.
Meanwhile, leveraged traders are not only responsible for market declines. The market is also experiencing a post-halving miner capitulation along with a liquidation squeeze. Bitcoin miners have sold more than 30,000 BTC this month, worth about $2 billion.
Wu explained that miners are selling their BTC reserves to fund equipment upgrades as outdated equipment has become unprofitable. This led to the weakest miners going out of business and liquidating their assets.
Additionally, Wu mentioned that the market is approaching a reversal on the daily candles. If this reversal materializes, it could lead to a bullish divergence correcting an oversold market.
However, Wu cautioned that Bitcoin is not yet in its purest form. According to the analyst, without a significant reduction in open interest in futures, the system remains unprepared for a bullish shift. He predicts a further decline to $54 thousand.#ЛюбимыйТокен #BinanceTournament"