A prominent analyst in the cryptocurrency space has predicted that Bitcoin (BTC) could enter a bullish phase due to an upcoming liquidation event. Speaking to his 112,400 followers on the X platform, Justin Bennett pointed out the large number of long positions at the $57,000 mark, an indicator of a potential upside in the market.
What drives market movements?
Bennett stressed that the market is ready to set a liquidity range at $57,000, which indicates that early long positions will be cleared before BTC prices rise significantly. He pointed out that at this level, there is considerable liquidity for long positions, which have higher leverage compared to short positions.
What are the key levels to watch?
According to Bennett, a drop in BTC to $57,000 would confirm a breakout of immediate support. He observed that this level is consistent with the liquidation of long positions in Bitcoin, coinciding with the trendline dating back to September 2023. Currently, BTC is trading just below the critical point of $62,300.
If long positions between $57,000 and $58,000 are liquidated, target liquidity could be between $68,000 and $70,000.
Bennett’s earlier forecast suggested that a move back to $70,000 could be in the cards after a pullback to $57,000.
Market uncertainty still looms over BTC’s development prospects.
Bennett is concerned that a break below a key level could hinder Bitcoin’s expected rebound, especially after the market’s relative stability over the past seven months. This market volatility could signal a critical moment for traders, as a break below current support could result in a significant shift in market behavior.
