Ramazan Eles 
Renowned analyst Willy Woo has shed light on the recent drop in Bitcoin and made some short-term price predictions for BTC.
Bitcoin has experienced a turbulent trajectory over the past few days, with its price plunging last night to levels not seen since early May before rebounding above $60,000, dipping as low as $58,400. This volatile price movement led to the liquidation of hundreds of millions of dollars in futures investments.
As investors and analysts speculate on Bitcoin’s next moves, Willy Woo has offered his insights on BTC’s short-term price targets. Woo attributes the recent correction below $59,000 to the excessive long positions in the futures market, stating that the recent dip has successfully eliminated much of the market’s leverage, but the process isn’t finished yet.
According to Woo, Bitcoin has cleared numerous long positions targeting its initial major level of $62,500. However, he noted that as investors continue to add new long positions with each recovery, they are effectively adding more fuel for potential long liquidations, leading to further volatility.
In addition to the long squeeze, Woo pointed out that miner selling has also contributed to the recent decline. He explained:
“On top of this liquidation squeeze, we are facing miner capitulation post-halving. Miners are engaging in a BTC selling frenzy to pay for hardware upgrades as old equipment becomes unprofitable. The weakest miners are shutting down and liquidating.”
Woo also highlighted that despite some short-term technical factors suggesting a potential reversal, Bitcoin still carries the risk of further declines. He emphasized that without a significant reduction in BTC futures positions, a sustainable upward movement in Bitcoin’s price is unlikely.
Woo warned that Bitcoin is likely to see new lows, identifying $54,000 as the next key level to watch for another layer of liquidations. He emphasized that the $54,000 level serves as a critical boundary between bearish and bullish trends and falling below this level would be crucial for BTC considering the current macro structure.
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