Bitcoin’s recent sharp dip has been linked to speculative trading and miner adjustments post-halving, says a crypto analyst in his latest X post. Willy Woo, an on-chain analyst, anticipates a rebound after a market purge.
Do you agree? Before you reach a conclusion, let’s analyse what exactly the analyst says, and does the present market scenario justify his arguments.
Reasons of the Bitcoin Drop: What Analysts Think
Bitcoin’s fall was driven by speculators who kept opening new long positions, according to Willy Woo. As per his opinion, this caused a cascading long squeeze, pushing Bitcoin below $60,000.
Woo also pointed out that Bitcoin miners have added to the downward pressure on the price. After the recent halving, which cut the block reward to 3.125 BTC, Bitcoin miners have seen their revenue drop. To cover their costs, they have been selling more Bitcoin than before, influencing the market dynamics further.
Bitcoin Price Trend: A General View
As of June 27, 2024, Bitcoin’s price is $60,720. It has decreased by 1.6% in the past 24 hours, 7.5% over the past week, and 10.8% in the past 30 days. The peak price this month was $71,103 on June 5. Since then, Bitcoin’s price has been weakening. At the start of the year, on January 1, Bitcoin was priced at around $44,193. It peaked at over $73,000 on March 13, marking the highest point of the year. The most significant price momentum of the year occurred between January 23 and March 13, when Bitcoin surged from under $40,000 to over $73,000. This month, a sharp decline was noted from June 6 to June 24, when the price dropped from over $70,000 to below $60,500.
The Bitcoin halving took place on April 19, 2024. On that day, BTC closed around $63,824. Although there were a few days of strong gains right after the halving, the price quickly dropped to around $58,251 by May 1. However, it soon rebounded and climbed above $71,000 by May 20. After reaching this peak, the price began to fall again starting June 6.
Analysts Forecast About Bitcoin Price Rebound
Despite the current downtrend, Woo is optimistic about a further price rebound. He described the current market situation as the ‘culling of weak miners.’ However, Woo emphasized that Bitcoin must purge futures open interest before a significant price increase can happen. He also identified $54,000 as the next potential liquidation level, though he acknowledged that reaching this might be tough.
In conclusion, Bitcoin’s recent price movements are heavily influenced by speculative trading and miner adjustments following the halving. Despite the currency decline, analysts like Willy Woo predicts a potential rebound, provided certain market conditions are met.
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