Crypto Analyst Justin Bennett Issues Bitcoin Liquidation Warning

A well-known cryptocurrency analyst, Justin Bennett, has issued a stark warning regarding a potential liquidation event in the Bitcoin market. Bennett, who has amassed a considerable following of 112,400 on the social media platform X, believes that Bitcoin is poised for one more shake-out before it embarks on a potential bull run.

Bennett shared his insights, suggesting that the current Bitcoin heatmap indicates that investors have amassed long positions at the price level of $57,000. This accumulation of long positions could be prone to liquidation before Bitcoin experiences a significant upward movement. “The size of the BTC long liquidations at $57,000 is far greater than the shorts we saw liquidated at $63,000,” Bennett noted, implying that a corrective move could occur before any major rally.

According to Bennett, confirmation of a drop to $57,000 will occur if Bitcoin breaks through its immediate support level of $62,300. He stated, “Markets love symmetry, and this lines up perfectly with those Bitcoin long liquidations at $57,000. It also intersects with the BTC September 2023 trend line.” As of the current trading period, Bitcoin is valued at $62,139, slightly below this critical threshold.

Back in late September, Bennett had forecasted a substantial rally that could see Bitcoin soar to $70,000 following its anticipated correction to $57,000. He emphasized that the market conditions favor sweeping the $57,000-$58,000 long positions before making a run towards the $68,000-$70,000 liquidity zone. For traders, an invalidation of this prediction would occur if Bitcoin sustained a break above $65,000.

Bennett’s analysis has prompted keen interest among traders and enthusiasts, many of whom are closely monitoring Bitcoin’s price action to gauge the next potential market moves.