A widely followed crypto analyst believes that Bitcoin (BTC) is primed for one more liquidation event before a new bull run ensues.
Trader Justin Bennett tells his 112,400 followers on social media platform X that Bitcoin’s heatmap suggests BTC bulls have built long positions at $57,000.
The crypto strategist believes that the market is likely to chase the liquidity zone to take out those who got in early before BTC witnessed a major upward move.
“The size of the BTC long liquidations at $57,000 is MUCH larger than the shorts we saw liquidated at $63,000.
It would be a shame if Bitcoin takes this one out before the real rally starts, especially now that I’m once again an idiot for suggesting anything beyond a market that lasts for seven months.”
Looking at Bitcoin’s chart, Bennett says the drop to $57,000 will be confirmed once BTC breaks through its immediate support level.
“Markets love symmetry, and this ties in perfectly with those long Bitcoin liquidations of $57,000.
It also crosses the September 2023 BTC trendline.
The trigger for this move is a sustained break below $62,300.”
At the time of writing, Bitcoin is trading at $62,139, slightly below the trader’s prime area.
In late September, Bennett predicted that a big rally to $70,000 would follow the correction to $57,000.
“Conditions are favorable for searching the BTC longs of $57,000-$58,000 before targeting the liquidity of $68,000-$70,000.
Disability for a sustained break above $65,000.”
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Generated image: Midjourney