Bitcoin Faces Risk of Sharp Drop Below $57K Amid Weak Demand

Bitcoin's price has been struggling to surpass $65,000 and is facing a risk of a sharp drop below $57,000 due to unliquidated long positions that could trigger a large liquidation event. According to analyst Joao Wedson, this pattern resembles the 2022 drop before a market bottom, potentially offering a strong buying opportunity if a sell-off occurs.

On-chain data shows weak demand with thin accumulation over the past 30-50 days and increasing Bitcoin balances on exchanges, indicating more sellers preparing to offload. This setup suggests that Bitcoin may face further downside in the near term before any significant rally.