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.

Here’s how the markets look to me.

$58.9k STH support, if this breaks we move to a bear market.

CVD selloff has peaked, so a phase of “up” next. CVD measures market orders (impatient buy/sells).

Longer term: still weeks away from a proper bullish environment. pic.twitter.com/NxVwSA4KtT

— Willy Woo (@woonomic) April 15, 2024

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.

The post Bitcoin Leverage Liquidation: $60K Holds, Short Liquidations to $71-75K Expected appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am