A widely followed crypto analyst believes Bitcoin (BTC) is poised for one more liquidation event before sparking a fresh bull run.
Trader Justin Bennett tells his 112,400 followers on the social media platform X that Bitcoin’s heatmap suggests that BTC bulls have piled up long positions at $57,000.
The crypto strategist thinks that the market will likely hunt the liquidity zone to shake out those who were early before BTC witnesses a big upside move.
“The size of the BTC long liquidations at $57,000 is FAR greater than the shorts we saw liquidated at $63,000.
It would be a shame if Bitcoin took these out before the real rally begins, especially now that I’m once again an idiot for suggesting more ranging from a market that’s ranged for seven months.”
Looking at Bitcoin’s chart, Bennett says the fall to $57,000 will be confirmed once BTC breaks its immediate support level.
“Markets love symmetry, and this lines up perfectly with those Bitcoin long liquidations at $57,000.
It also intersects with the BTC Sept. 2023 trend line.
The trigger for this move is a sustained break below $62,300.”
At time of writing, Bitcoin is trading for $62,139, slightly below the trader’s key area.
In late September, Bennett predicted that a big rally to $70,000 would follow the correction to $57,000.
“The conditions favor sweeping the BTC $57,000-$58,000 longs before targeting the $68,000-$70,000 liquidity.
Invalidation on a sustained break above $65,000.”
Generated Image: Midjourney