An experienced crypto analyst predicts that Bitcoin (BTC) is on the verge of experiencing another round of liquidation before initiating a new bullish trend.
Trader Justin Bennett, with a significant following on the social media platform X, suggests that Bitcoin’s heatmap indicates a buildup of long positions at $57,000 by BTC bulls.
The analyst believes that the market is likely to target this liquidity zone to shake out early entrants before Bitcoin embarks on a significant upward movement.
“The number of BTC long liquidations at $57,000 surpasses the shorts liquidated at $63,000.
It would be unfortunate if Bitcoin clears these out before the actual rally commences, especially since I’m once again perceived as foolish for expecting more ranging in a market that has been ranging for seven months.”
Examining Bitcoin’s chart, Bennett suggests that the drop to $57,000 will be confirmed once BTC breaches its immediate support level.
“Markets tend to exhibit symmetry, and this aligns perfectly with the BTC long liquidations at $57,000.
It also coincides with the BTC September 2023 trend line.
The catalyst for this move is a sustained drop below $62,300.”
Currently, Bitcoin is trading at $62,139, slightly below the trader’s critical level.
In late September, Bennett forecasted that a substantial rally to $70,000 would follow the correction to $57,000.
“The conditions favor clearing out the BTC $57,000-$58,000 long positions before aiming for the $68,000-$70,000 liquidity.
Invalidation occurs with a sustained rise above $65,000.”
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
Generated Image: Midjourney
