Bitcoin‘s recent plunge to a 53-day low can be attributed to a “cascading long squeeze” as miners continue to offload their holdings, according to Bitcoin analyst Willy Woo.

“Speculators kept adding to new long positions, just adding more fuel for more liquidations in a cascading long squeeze,” Woo, a pseudonymous Bitcoin analyst, wrote in a June 24 X post.

A long squeeze occurs when investors holding long positions (betting on a price increase) start selling as the price drops to minimize their losses.

This triggers further price declines, causing more long-position holders to sell.

This is the opposite of a short squeeze, which gained notoriety in January 2021 when retail traders inflated GameStop’s stock price, forcing large short-position investors to buy back the stock at higher prices, driving the price even higher.

Data from CoinGlass shows that a drop below $60,000, such as the June 24 dip below $59,000, could liquidate $1.16 billion in long positions.

In contrast, a 3.73% upward movement could liquidate $2.18 billion in short positions, indicating traders’ current bearish sentiment.

“Worth a breakdown of what’s happening given the fear in the market,” Woo added.

The Crypto Fear and Greed Index, which gauges market sentiment for Bitcoin and the broader cryptocurrency market, has plunged to its lowest point in nearly 18 months.

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Woo also highlighted the “post-halving miners capitulation” event.

This theory suggests that if Bitcoin’s price falls below a certain threshold, mining becomes unprofitable, leading miners to shut down their hardware and sell their coins.

“Superimposed on this liquidation squeeze, we have a post-halving miners capitulation,” Woo explained, noting that miners are selling Bitcoin to fund necessary upgrades while weaker miners are shutting down and liquidating their assets.

On June 25, Bitcoin’s price hovered just above the crucial $60,000 mark, trading at $61,320, according to CoinMarketCap data.

On June 24, Bitcoin experienced its most significant daily decline in over three months, falling 6.26% to $58,890, as noted by pseudonymous crypto commentator Bitcoin Archive.

“The biggest daily discount in price for 97 days,” they wrote on June 24.

Jan3 CEO Samson Mow believes the “Bitcoin dip is purely sentiment and fear driven, not from selling off large holdings.”

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