Bitcoin Undergoes Massive Price Correction
Bitcoin, the oldest and largest cryptocurrency, has experienced a significant price correction recently. This decline occurred shortly after the launch of 11 Spot Bitcoin ETFs. Although the BTC price initially rose to $49,000, it eventually dropped below $43,000.
Crypto Analyst Expects Further Decline
Amidst the uncertainty surrounding Bitcoin’s price, a crypto analyst predicts that there will be a further decline. Additionally, he warns about a major liquidation of long positions that could occur if the BTC price falls below $42,000.
Impending Massive Bitcoin Long Liquidation
A well-known crypto analyst, Crypto Rover, shared a snapshot of the Bitcoin Liquidation Heatmap and predicted that long positions worth $250 million would be liquidated when the Bitcoin price drops to $41,900. This significant sell-off could potentially push the value of the cryptocurrency even lower.
Another analyst, Kripto Kurdu Global, previously predicted an even higher level of liquidation. While Bitcoin was trading between $46,000 to $49,000 after the ETF approval, the analyst stated that a massive $3.14 billion long liquidation would occur if Bitcoin retreated to $42,967.
However, only $59 million worth of long positions were liquidated in the last 24 hours according to Coinglass data. Additionally, Crypto Rover’s prediction seems more reasonable as a substantial $900 million liquidation occurred prior to the Spot Bitcoin ETF approval.
In his latest YouTube video, Crypto Rover revealed that he is selling a significant portion of his Bitcoin holdings and investing in Ethereum (ETH) instead. He believes that Ethereum has better potential for growth due to seven Spot Ethereum ETFs set to go live in four months, along with a major Ethereum upgrade.
Bitcoin Price Expected to Drop Below $40K
Currently trading around $42,600, Bitcoin has experienced several consecutive red sessions after the ETF approval. It holds a market cap of $835.68 billion, and as of writing, the Bitcoin price was $42,605.27, down by 0.84% on Wednesday, January 17. However, BTC’s trade volume has increased by 17.76% to $24.67 billion.
In a recent video, Crypto Rover hinted at a potential Bitcoin price correction below the $40,000 mark. The analyst stated that his buy zone for BTC is around $38,700, indicating a decline of nearly 10% from the current price. However, he also mentioned that before the correction occurs, BTC could reach $44,500.
Hot Take: Uncertainty Surrounds Bitcoin’s Price Correction
The recent price correction in Bitcoin has left many investors uncertain about its future trajectory. With the launch of Spot Bitcoin ETFs and predictions of massive long liquidations, the crypto market is experiencing heightened volatility.
Crypto analysts like Crypto Rover anticipate further declines in Bitcoin’s price and advise caution to those holding long positions. While some believe that the correction could push BTC below $40,000, others remain optimistic about its potential rebound.
As the market continues to fluctuate, it’s crucial for crypto enthusiasts to stay updated on the latest developments and make informed decisions based on their risk tolerance and investment goals.
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