Willy Woo Predicts Further Decline for Bitcoin, Citing Recent Correction
As Bitcoin continues to experience fluctuations, the price of BTC plummeted yesterday, reaching levels not seen since May. This sudden drop led to the liquidation of millions of dollars in futures investments before the price rebounded above $60,000.
Market analyst Willy Woo has attributed the recent correction in Bitcoin to an overabundance of long positions in the futures market, which ultimately led to a gradual long squeeze. He explained that the initial decline managed to eliminate excessive leverage in the market, but further work is needed.
Woo also highlighted the impact of miners’ BTC sale on the recent decrease, emphasizing that post-halving miners capitulation is contributing to the current market conditions. He warned that Bitcoin still faces the risk of further decline, with $54,000 being identified as the next critical level to watch for potential liquidation.
In a tweet, Woo acknowledged that while short-term technical factors suggest a potential reversal for BTC, a sustainable upward movement is unlikely without a significant decrease in BTC futures positions. He noted that a break below the $54,000 level could be a critical turning point for Bitcoin, considering the current macro structure.
Woo concluded by stating that he typically does not focus on short-term price action, but given the prevailing fear in the market, he felt it was necessary to provide insight into the ongoing developments.
*This is not investment advice.
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