An analyst from on-chain analysis platform Santiment focused on the impact and recovery timeline of the recent declines in Bitcoin.

Bitcoin’s plunge to $54,000 has triggered a long squeeze, with long futures positions suffering their biggest losses in a year, according to the analyst.

Will Bitcoin rebound from here?

The analyst noted that the heavy liquidations have led investors to believe “it’s time for a reversal,” but argued that this may not happen immediately.

He pointed out that after a similar magnitude of large liquidations in 2023, significant gains were seen after about 2-3 months. The August decline of last year brought a period of sideways consolidation, with the price not starting to rise again until October.

Bitcoin is up 0.4% in the last 24 hours and is currently trading at $57,600, according to CoinGecko data.

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