According to a crypto analyst, the frequency of Bitcoin (BTC) reaching higher support price levels and the lack of immediate froth in the derivatives markets suggest that its price is unlikely to drop to $50,000 in the near future. Dylan LeClair, a senior analyst at digital asset fund UTXO Management, explained in a recent note that if Bitcoin rises back into the $70,000-$75,000 price range, it will put significant pressure on short positions. If Bitcoin’s price reaches $70,000, approximately $174.17 million will be liquidated, while hitting $75,000 would result in around $830 million worth of short positions facing liquidation. LeClair also noted that while a decline to $50,000 could trigger substantial liquidation of long positions, he finds it unlikely given the recent price shifts and increasing support levels. He backed up his claims by citing the recent inclusion of five big Wall Street firms in BlackRock’s Bitcoin exchange-traded fund (ETF) prospectus. The upcoming halving event in April is also being speculated upon by prominent crypto traders, who believe there is considerable potential for further upward movement in the short-term. However, readers are advised to conduct their own research and exercise caution when making investment decisions.
Analyst deems it highly improbable for Bitcoin to return to the $50K price level.