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Bitcoin’s price has faced renewed pressure as it hovers below the $60,000 mark, sparking concerns among traders about a potential deeper decline. After failing to sustain a rally above $65,000, the outlook for Bitcoin (BTC) remains uncertain, with some analysts predicting a possible “liquidation cascade” that could push the price down to $50,000.
BTC Price Faces Uncertainty
Despite a 40% increase from its August lows, Bitcoin is struggling to maintain its recent gains. Data from Cointelegraph Markets Pro and TradingView indicates that BTC/USD experienced around a 1% loss on August 27, slipping from a high of $65,100 on Bitstamp the day before.
Market analysts are expressing doubts about the ability of buyers to uphold the short-term uptrend. Popular trader Credible Crypto, sharing his insights on X (formerly Twitter), suggests that the selling pressure on Binance, the largest global exchange, is significant enough to prevent any immediate recovery.
Concerns Over a Liquidation Cascade
Credible Crypto warned that if the selling pressure from Binance continues, it could trigger a “liquidation cascade” that drives the price back to its range lows. He pointed out that while some buyers have re-entered the market on Coinbase, Binance traders are selling at twice the volume. The high open interest on Binance’s Bitcoin futures market and substantial liquidity below current levels could exacerbate the situation.
“If Binance sellers keep up the sell pressure, it could trigger a liquidation cascade back down to our range lows,” he noted, emphasizing that it’s not a matter of “if” but “when” this decline might occur.
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BTC’s Potential Downside Below $60,000
Fellow trader Crypto Chase also voiced a cautious stance regarding Bitcoin’s short-term prospects. In his latest update to followers on X, he highlighted the risk of Bitcoin falling below the $60,000 threshold.
“If we lose $59K cleanly, I think we head back towards the mid $50K’s if not lower,” he stated. Despite this, he acknowledged that there is still a chance for a bullish reversal, especially if there are unfilled buy orders in the lower price range.
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