Bitcoin’s Secret Reset: Liquidations Herald Imminent Price Surge?

Bitcoin Market Resets, Analysts Predict Recovery

Bitcoin’s market has experienced a significant reset, with over $10 billion in open interest wiped out in just two months. Analysts beleive this could signal an imminent price recovery. According to CryptoQuant analyst Darkfost, Bitcoin’s open interest peaked at $33 billion on January 17, indicating high market leverage. However, political uncertainty linked to former U.S. President Donald Trump’s actions led to widespread liquidations.

Between February 20 and March 4, nearly $10 billion in open interest vanished. This decline pushed the 90-day futures open interest change to -14%, often a sign of market resets before price recoveries. The sharp drop in open interest suggests a more stable foundation for future growth.

Despite the decline, the long-term outlook remains optimistic. Economist Timothy peterson notes that April and October are typically when Bitcoin sees its biggest seasonal gains. Peterson predicts Bitcoin could hit new all-time highs before June, with a median target of $126,000. His “Lowest Price Forward” model shows Bitcoin’s price floor has risen to $69,000, with a 95% chance of holding. Past trends show that corrections like the recent 30% pullback often precede strong rebounds. Peterson’s analysis reveals Bitcoin might reach new highs before June. However, Benjamin Cowen warns that if Bitcoin drops below the 2024 highs, the bull market might be in jeopardy. Holding above $70,000–$73,000 would maintain the market’s structure. If past trends hold, this reset could pave the way for another strong rally in the coming months.

• Bitcoin’s price floor is now $69,000.
• Bitcoin is trading near its ancient seasonal range.
• Most of Bitcoin’s annual performance occurs in April and October.

bitcoin is currently trading at $82,900. If it closes in the low $60,000s, it could signal a more bearish outlook by Q3. Cowen suggests the bull market might be over if it drops below this level.

Bitcoin is in a crucial consolidation phase. If it holds above $70,000–$73,000, it could signal a macro lower high later in the year, potentially resulting in a bearish outlook by Q3.

Bitcoin’s long-term outlook is still positive. Analysts like Peterson see potential for new all-time highs. though, Cowen warns that a drop below $70,000 could end the bull cycle. The current price of $82,900 suggests a strong rally could follow. For more insights, check <a href="https://twitter.com/darkfost_coc/status/1901368698868473975?s=46&t=nznXkss3debX8JIhNzHmzw. For more, visit <a href="https://twitter.com/darkfost_coc/status/1901368698868473975?s=46&t=nznXkss3debX8JIhNzHmzw. for detailed analysis.