Bitcoin (BTC) may be gearing up for one more round of liquidation before embarking on a new bull run, according to a prominent crypto analyst. Justin Bennett, a well-known trader, has shared his insights with his large following on X, suggesting that Bitcoin’s current heatmap indicates a buildup of long positions at the $57,000 mark.
Bennett believes that the market is likely to target this liquidity zone in order to shake out early investors before Bitcoin experiences a significant upward movement. He notes that the number of BTC long liquidations at $57,000 far exceeds the shorts that were liquidated at $63,000, indicating a potential shakeout before a major rally.
Analyzing Bitcoin’s chart, Bennett predicts that the drop to $57,000 will be confirmed once BTC breaches its immediate support level. He points out that this move aligns perfectly with the long liquidations at $57,000 and intersects with the September 2023 trend line, with a sustained break below $62,300 serving as the trigger for this anticipated movement.
As of the time of writing, Bitcoin is trading at $62,139, just below Bennett’s identified key area. In a previous prediction made in late September, Bennett forecasted a rally to $70,000 following a correction to $57,000, with plans to sweep the $57,000-$58,000 longs before targeting the $68,000-$70,000 liquidity. He also highlights that a sustained break above $65,000 would invalidate this scenario.
For the latest updates and alerts on Bitcoin’s price action, interested individuals can subscribe to receive email notifications directly to their inbox. Additionally, they can follow The Daily Hodl on Twitter, Facebook, and Telegram to stay informed. The featured images in this article are sourced from Justin Bennett’s social media accounts.
In conclusion, Bitcoin’s price movement is closely monitored by traders and analysts like Justin Bennett, who provide valuable insights into potential market trends. As Bitcoin continues to navigate through volatile waters, investors are advised to stay informed and vigilant in order to make well-informed decisions in the ever-changing crypto landscape.