bullish

Bitcoin

Drops

Rekt (rektarb.xyz)

Rekt

Bitcoin is navigating a complex landscape and appears poised for a notable shift, despite facing considerable challenges. While it is already struggling to overcome the $60k resistance, liquidations worth over $500 million are looming over its head and threaten to add more pressure on Bitcoin’s price if it drops below $58,000. 
Jamie Coutts, a leading crypto analyst at Real Vision, suggests that Bitcoin’s current mid-cycle correction aligns with a “perfect setup” from a macroeconomic perspective. 
Coutts pointed out on August 13 that Bitcoin has historically tended to trough several months before the global M2 money supply hits its bottom, surging ahead of liquidity moves only to undergo mid-cycle corrections.&nbsp; 
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The pattern indicates a potentially bullish breakout for Bitcoin as global liquidity increases, especially with the advent of spot Bitcoin exchange-traded funds (ETFs). 
Recent market events have tested Bitcoin’s resilience, with the cryptocurrency recovering from a $510 billion sell-off that pushed its price to a five-month low of $49,500 on August 5. Despite the rebound, Bitcoin remains below the crucial $60,000 mark. 
Analysts, including Coutts, acknowledge that, while the macroeconomic prognosis is bright, Bitcoin may still see a correction, possibly falling to $55,000 before gaining additional upward momentum. 
This continued volatility emphasizes the dichotomy between encouraging macroeconomic indicators and market-driven price changes. 
The looming threat of significant liquidations adds to the current uncertainty. Should Bitcoin’s price drop below $58,000, it might trigger $489 million worth of leveraged short position liquidations, according to Coinglass.&nbsp; 
If Bitcoin falls below $57,500, cumulative short liquidations could exceed $800 million. The cryptocurrency’s struggle to break free from its two-week downtrend, which began on July 28, underscores the precarious nature of its recovery.&nbsp; 
Analyst Rekt Capital emphasized that while a successful retest of the downtrend could foster bullish momentum, this will require strong buy-side volume. Bitcoin’s path forward will largely depend on its ability to stabilize and build momentum amidst these market pressures. 
Bitcoin’s current situation presents a combination of opportunity and risk. With favorable macroeconomic indicators suggesting potential bullish movement, the cryptocurrency’s trajectory will be shaped by its capacity to manage imminent market volatility and liquidations.&nbsp; 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 Also Read:<a href="https://www.cryptotimes.io/2024/08/12/bitcoin-price-drops-below-59000-falls-4-in-24-hours/" target="_blank" rel="noreferrer noopener"> Bitcoin Price Drops Below $59,000, Falls 4% in 24 Hours&nbsp;</a> 
</blockquote>

Bitcoin Faces Risks of $500M Liquidations if Price Drops Below $58K

The Crypto Times

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