Bitcoin on the Brink: Macro Setup “Perfect” But $500 Million Liquidation Threat Lurks ⚠️
➡️Macro setup suitable for bullish breakout 🌐
According to Jamie Coutts, Chief Crypto Analyst at Real Vision, Bitcoin is in a “perfect” macroeconomic setup for a bullish breakout. As Bitcoin’s current mid-cycle correction positions it for an imminent rally, Coutts highlights that the global M2 money supply combined with upcoming Bitcoin spot ETFs could fuel this potential rally. Over the past decade, Bitcoin has tended to bottom months before global M2 bottoms, signaling a strong move ahead.
➡️Liquidation Risk of $500 Million Amid Volatility 💣
Despite this bullish outlook, Bitcoin still faces significant volatility risks. A drop below $58,000 could trigger a major liquidation event, with nearly $500 million in leveraged short positions at stake. If Bitcoin falls below $57,500, cumulative liquidations could exceed $800 million, increasing market volatility.
➡️Can Bitcoin Break the Two-Week Downtrend? 📉
Bitcoin has been struggling to break out of a two-week downtrend since July 28. A successful retest of this downtrend line is crucial for further upside momentum, according to analyst Rekt Capital. However, if this trend continues, Bitcoin could correct to $55,000 before recovering further. Strong buying volume will be key to reversing this trend and pushing Bitcoin above the psychologically important $60,000 level.
