Warning Signals Flash As Bitcoin Surges: Expert Spotlights Potential $25,000 Liquidity Sweep
05 Dicembre 2023 - 4:00PM
NEWSBTC
Bitcoin (BTC), the world’s leading cryptocurrency, has recently
witnessed a surge in price, reaching a new yearly high of $42,100
on Monday. However, this significant price increase has raised
concerns among market participants about the possibility of a
potential correction and a subsequent liquidation sweep, which
could drive the price down to as low as $25,000. Second
Capitulation And Liquidity Sweep For Bitcoin? Justin Bennett, a
prominent technical analysis expert, acknowledges the remarkable
performance of Bitcoin, stating, “It’s been a hell of a run from
BTC, and it may very well continue without a significant correction
in the short term.” However, Bennett highlights that the
previous two bear markets concluded with a second capitulation,
suggesting the possibility of a similar scenario occurring this
time. Bennet cautions against ruling out a liquidity sweep that
could drive the price down to $25,000. Related Reading: Analyzing
The Titans: How Bitcoin Whales Influenced The Surge To $40,000 To
provide further context, liquidity sweep refers to a sudden and
drastic move in price that aims to clear out excess leverage and
trigger liquidations of overleveraged positions. Such a move
could lead to a cascading effect, causing the price to drop further
as more positions get forcefully closed. The occurrence of a
liquidity sweep at the $25,000 level would not only test the
resilience of Bitcoin but also serve as a crucial moment for market
sentiment. As seen in the 2-week chart above shared by Bennet,
despite the potential correction in BTC, this could be the last
difficulty that Bitcoin bulls experience before the continuation of
the bull run; this will be further fueled by the potential approval
of Bitcoin spot exchange-traded funds (ETFs) applications by the US
Securities and Exchange Commission (SEC), which is expected to push
prices even higher. A boost from the halving of Bitcoin will
further add to the bullish momentum and sentiment in the market,
which could push the price of BTC to new all-time highs (ATH).
Additionally, historical trends indicate a promising outlook for
Bitcoin. Analyst Ali Martinez points out that in the past, strong
BTC performance during October and November has been followed by a
bullish December. According to Martinez, market participants can
anticipate a bullish December ahead if this pattern holds. El
Salvador’s BTC Investments Prove Profitable El Salvador’s President
Nayib Bukele recently announced that the nation’s investments in
Bitcoin have yielded significant profits, refuting previous claims
of losses made by critics. President Bukele revealed that if
El Salvador were to sell its Bitcoin holdings at the current market
price, the country would not only fully recover its initial
investment but also make a profit of $3,620,277.13. Addressing
the numerous articles and hit pieces that had ridiculed El
Salvador’s Bitcoin investment strategy, President Bukele emphasized
that these assessments were based on the cryptocurrency’s market
price at the time of evaluation. With Bitcoin’s recent surge in
value, the country’s investment has turned profitable. Related
Reading: Ethereum Turns Deflationary With Over 106,000 ETH Burned
In A Single Month While acknowledging that the price of Bitcoin
will continue to fluctuate, President Bukele reaffirmed that El
Salvador remains committed to its long-term strategy and has no
intention of selling its Bitcoin holdings. President Bukele
stated: Of course, we have no intention of selling; that has
never been our objective. We are fully aware that the price will
continue to fluctuate in the future, this doesn’t affect our
long-term strategy. At the time of writing, BTC is trading at
$41,200, reflecting a notable price increase of 3.8% over the past
24 hours and 12% over the past seven days. Featured image from
Shutterstock, chart from TradingView.com
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