Bitcoin Leverage Liquidation: $60K Holds, Short Liquidations to $71-75K Expected

Bhushan Akolkar
April 15, 2024
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Bitcoin Traders Prioritize Broader Risks Over 'Halving'

Highlights

  • Bitcoin analyst Willy Woo says BTc price drop below $58.9K could shift to bear market.
  • However, in the near term, Will Woo expects short liquidations in the range of $71-$75k.
  • Woo said that the BTC price consolidating at all-time high is a good thing for recovery.

During the heightening tensions between Israel and Iran, Bitcoin (BTC) experienced significant price volatility, dropping to a low of $61,500 over the weekend. However, there has been a partial recovery in Bitcoin since then, with Bitcoin now trading up by 1.5% at a price of $65,342.71, maintaining a market cap of $1.3 trillion

Key Levels to Watch for Bitcoin Price

Bitcoin analyst Willy Woo provided insights into the current market conditions, indicating a critical support level at $58.9k. According to Woo, a breach of this support could signal a transition to a bear market.

He noted that the Cumulative Value Delta (CVD) selloff has likely reached its peak, suggesting a forthcoming upward phase. CVD measures market orders, indicating impatient buy and sell activities. However, Woo cautioned that a proper bullish environment may still be weeks away.

Woo emphasized that the market structure remains unchanged from his analysis last month, characterized by sideways movement in March and choppy fluctuations in April. Additionally, the upcoming halving event next week could introduce further volatility to the market.

In a broader context, Woo highlighted the potential for two upward levels on the macro indicator. Despite prevailing bearish sentiment, he disclosed purchasing during the support retest, adhering to his strategy. This decision reflects his optimism amid the current market conditions.

BTC Short Liquidations to $71-$75K

Bitcoin analyst Willy Woo discussed recent market dynamics, highlighting a significant decrease in long leverage down to $60k. He noted that for prices to liquidate further, they would need to breach the robust $59k STH support, indicating a potential bearish trend. Instead, Woo suggested that short liquidations to the range of $71-75k are more likely in the near term, as price movements are influenced by liquidations.

Examining demand and supply indicators, among other metrics, Woo expressed confidence that the ongoing accumulation during the consolidation phase will eventually propel Bitcoin price past its all-time high (ATH). He emphasized the importance of patience and cautioned against impulsive actions.

Woo underscored the significance of prolonged consolidation around ATH, explaining that it facilitates the transfer of coins between investors, strengthening price discovery. He viewed Bitcoin’s emergence as a trillion-dollar asset class as a positive development, highlighting its enduring significance in the financial landscape.

Courtesy: Willy Woo

Another major catalyst for Bitcoin is the approval of the spot Bitcoin ETF by the Hong Kong regulators. This could lead to more institutional players from Asia participating in regulated Bitcoin instruments. It will be interesting to see whether Hong Kong’s Bitcoin ETF receives the same inflows as seen in the US.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.