Analyst: Bitcoin Unlikely to Drop to $50,000 Soon, Short Liquidations Mounting
According to a crypto analyst, Bitcoin's recent trends suggest it's unlikely to drop to $50,000 soon.
Dylan LeClair, a senior analyst at digital asset fund UTXO Management, highlighted the lack of “immediate froth” in derivatives markets and the frequency of Bitcoin hitting higher support levels as reasons for this assessment.
LeClair noted that if Bitcoin rises back to the $70,000–$75,000 range, it could trigger significant pressure on short positions. He pointed out that short liquidations are accumulating in the $70,000–$75,000 range.
Data from CoinGlass suggests that a rise to $70,000 could lead to around $174.17 million in liquidations, while reaching $75,000 could trigger approximately $830 million in liquidations. This would represent an increase of about 7.8% from Bitcoin’s current price of $69,300.
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LeClair emphasized that while a drop to $50,000 could result in substantial liquidation of long positions, he finds it unlikely given the recent price movements and strong support levels.
He backed his analysis by referencing BlackRock’s recent update to its Bitcoin exchange-traded fund (ETF) prospectus, which added five major Wall Street firms as new authorized participants.
Amid speculation about Bitcoin’s price ahead of the halving event on April 20, traders are eyeing further upward movement. Rekt Capital, a prominent crypto trader, believes there’s significant potential for further gains in the short term, estimating that the market is about one-third through the “bull market” phase.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
