“Longer term: still weeks away from a truly bullish environment.”
AMBCrypto evaluated the analyst’s forecast by looking at the liquidation heatmap. This heatmap predicts where large-scale liquidations could take place.
As such, traders can identify areas of high liquidity, resistance and support zones. A high concentration of liquidity is called a magnetic zone.
At this point there is the liquidity heatmap highlights a color change, indicating that the price could move towards the point.
At the time of writing, the metric showed that Bitcoin could head towards $66,638. Here, $7.18 million worth of contracts could be liquidated.
However, if BTC falls, the next area of interest would be $64,580. Right now, open positions worth $29.17 million could be wiped out on Binance alone.
Source: Coinglass
In short: Bitcoin needs to cut long leverage positions to $60,000 to confirm this bear phase. If this does not happen, the price of the coin could rise between $72,000 and $75,000.
Stay calm, BTC’s decline is not over yet
Although BTC showed bullish trends, the Network Value to Transactions (NVT) ratio showed that the analyst may have had a point.
For context: the NVT ratio indicates whether a cryptocurrency is overvalued or not. If the metric spikes, it means the cryptocurrency may be overvalued relative to the transactions.
However, a low NVT ratio means that the network is undervalued and prices may rise in the short term.
At the time of writing, Bitcoin’s NVT ratio has moved higher, suggesting the price could be overvalued given current market conditions.
Source: Santiment
If the price remains high in the coming days, the price of Bitcoin could undergo another correction. However, Woo shared his Bitcoin for the long term prediction hours after his first post.
Is your portfolio green? Check out the BTC profit calculator
According to him, the coin could reach $91,000 this cycle, and $650,000 in the coming years. He concluded,