Bitcoin's $57K Test: Liquidation Reset Could Spark Next Rally

Bitcoin's decline continues, with the asset struggling to break above $65,000. Analyst Joao Wedson has warned of the risk of a deeper decline, pointing to the unliquidated longs below $57,000 as a major concern.

The liquidation levels below $57,000 could trigger a massive liquidation event and force Bitcoin lower, according to Wedson. He noted that a similar pattern occurred in 2022, when the price plunged one final time before finding its bottom.

Wedson believes that these types of liquidation events have historically marked some of the best places to accumulate an asset, given the strong odds of a subsequent market rebound.