Bitcoin Hits New Yearly High Amid Concerns of Potential Correction
Bitcoin (BTC) has recently reached a new yearly high of $42,100, causing some market participants to worry about a potential correction and liquidation sweep that could drive the price down to $25,000.
Prominent Analyst Warns of Second Capitulation and Liquidity Sweep
According to technical analysis expert Justin Bennett, previous bear markets concluded with a second capitulation, suggesting the possibility of a similar scenario this time. He warns against ruling out a liquidity sweep that could lead to further price drops and test market sentiment.
A liquidity sweep refers to a sudden move in price that aims to clear out excess leverage and trigger liquidations of overleveraged positions. This could result in a cascading effect as more positions are forcefully closed.
Potential Approval of Bitcoin ETFs and Halving Boost Bullish Momentum
Despite the potential correction, Bennett’s chart suggests that this could be the last difficulty before the continuation of the bull run. The approval of Bitcoin spot exchange-traded funds (ETFs) applications by the US Securities and Exchange Commission (SEC) is expected to push prices higher.
The upcoming halving of Bitcoin will also contribute to bullish momentum and sentiment in the market, potentially driving BTC to new all-time highs.
El Salvador Profits from BTC Investments
El Salvador’s President Nayib Bukele announced that the nation’s investments in Bitcoin have yielded significant profits. If El Salvador were to sell its Bitcoin holdings at the current market price, it would not only recover its initial investment but also make a profit of $3,620,277.13.
Bukele dismissed previous claims of losses and emphasized that the assessments were based on the cryptocurrency’s market price at the time. With Bitcoin’s recent surge in value, the country’s investment has become profitable.
El Salvador remains committed to its long-term strategy and has no intention of selling its Bitcoin holdings despite price fluctuations.
Bitcoin Price and Market Update
At the time of writing, BTC is trading at $41,200, reflecting a 3.8% increase over the past 24 hours and a 12% increase over the past seven days.
Hot Take: Bitcoin’s Surge Raises Concerns of Potential Correction
The recent surge in Bitcoin’s price has sparked worries among market participants about a potential correction and subsequent liquidation sweep. While some analysts caution against ruling out these possibilities, others believe that this could be the last obstacle before the continuation of the bull run. The approval of Bitcoin ETFs and the upcoming halving are expected to fuel further bullish momentum. Meanwhile, El Salvador’s profitable BTC investments have proven critics wrong and reaffirmed the country’s commitment to its long-term strategy. Despite price fluctuations, Bitcoin continues to attract attention as it trades at a new yearly high.
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