What Caused the Bitcoin Price Crash and What Comes Next When BTC Rises Above $61K?

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What Caused the Bitcoin Price Crash and What Comes Next When BTC Rises Above $61K?


Bitcoin’s price has been on a roller-coaster ride over the past few days, leading to hundreds of millions of liquidations.

Traders and analysts are now speculating on what will happen next, and Willy Woo has provided some insight into BTC’s short-term price targets.

BTC Rises Above $61 Thousand Again


The BTC price went off a cliff yesterday, falling to a low not seen since the beginning of May.

As seen in the chart below, the cryptocurrency dropped to somewhere around $58,400 before moving into a recovery phase.

Source: TradingView

This increase in volatility caused numerous liquidations in the futures market. Their number reached $360 million in the last 24 hours, and the vast majority of them, as expected, were long positions.

Approximately $280 million of liquidations took a long time, according to data from Coinglass.

Willy Woo, a well-known supporter and crypto veteran, offered an analysis of what happened and what the next steps should be for BTC.

What’s Next for Bitcoin Price?


According to Willy Woo, yesterday’s move was largely due to the long liquidation process in the futures market.

Hey argument He said the initial primary target for deleveraging was $62.5K, but then speculators continued to add new long positions and “added more fuel for further liquidations in a gradual long squeeze.”

Another factor in the accident was the surrender of the miners:

On top of this liquidation squeeze, we are faced with the capitulation of miners post-halving. Miners are going on a BTC selling spree to pay for hardware upgrades because old hardware is no longer profitable. The weakest miners are closing shop and being liquidated. – Woo said.

Woo predicted that short-term technical factors were pointing to a reversal, and so it was; BTC price increased to approximately 61 thousand dollars.

Source: Willy Woo, X

However, the analyst warned that “BTC is not out of control.” According to him, it is important to monitor how much speculation (leveraged positions) is cleared from the system.

The system is not ready to rise until the open positions in futures are cleared.

On this front, data shows that less than 3% of BTC open positions have been wiped out in the last 24 hours.

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