🔥This Analyst Says Bitcoin Unlikely to Drop Below $50K Again 🚀
According to a crypto analyst, Bitcoin's price is unlikely to drop to $50,000 soon. They point to Bitcoin consistently hitting higher price levels and the lack of excessive trading in futures markets as reasons for this prediction.
Dylan LeClair, a senior analyst at UTXO Management, explained that if Bitcoin climbs to $70,000-$75,000, it could force many traders betting against it to close their positions, causing a surge in buying activity.
CoinGlass data suggests that if Bitcoin hits $70,000, around $174.17 million worth of short positions would be liquidated. If it reaches $75,000, approximately $830 million worth of short positions would be closed out.
Comparing this to Bitcoin's current price of $69,344, a rise to $75,000 would represent a 7.8% increase. Similarly, a 7.5% drop in price on March 15 led to $525.2 million in liquidations.
LeClair believes that even though a drop to $50,000 could lead to significant sell-offs, the increasing number of people willing to buy Bitcoin at higher prices makes it unlikely. He also mentioned the recent support levels in Bitcoin's price as evidence against such a drop.
He pointed out BlackRock's update to its Bitcoin exchange-traded fund (ETF) prospectus, which included major Wall Street firms as new participants, as a sign of growing institutional interest in BTC.
With the Bitcoin halving event approaching in 13 days, there is speculation about its impact on the price. The halving event, which occurs every four years, reduces the rewards for Bitcoin miners. Some traders believe that historical patterns suggest Bitcoin's price could rise significantly in the coming years.
Despite this optimism, traders like Rekt Capital suggest caution and believe that Bitcoin's current market phase may still have room for further growth.
NB: Investing in Bitcoin carries risks. Readers should do their own research before making any investment decisions. This post does not provide investment advice/recommendations.