Analyst Says Speculators and Bitcoin Miners Responsible for BTC’s Recent Plunge Below $60,000

Speculators Contribute to Bitcoin’s Plunge

According to Willy Woo, a prominent onchain Bitcoin ( BTC) analyst, the recent decline in the top cryptocurrency’s price to the $58,000 range was driven by speculators continually opening new long positions. Woo contends that these speculators contributed to “more fuel for more liquidations in a cascading long squeeze,” ultimately causing BTC to fall below $60,000.

In a post on X, Woo, who avoids short-term price action analysis, also attributed part of the downward pressure to BTC miners adjusting to the post-halving reality.

“Miners are on a BTC selling spree to pay for hardware upgrades due to the old hardware no longer being profitable. The weakest miners closing shop and being liquidated,” Woo asserted.

Following the halving event, which saw the block reward slashed to 3.125 bitcoins ( BTC), miners have had to contend with reduced revenue. To cover the revenue shortfall, miners have been offloading more BTC onto the market than they did before the halving.

‘Culling Weak Miners’

However, in his June 24 post, Woo characterizes this as the “culling of weak miners,” which he says will be followed by a price rebound. To support his prediction of a BTC rebound, Woo shared a chart that he says points to a reversal.

However, the onchain analyst warns that even if this prediction plays out, BTC will still need to purge futures open interest in the system before the price can rise again. At the time of writing, the top crypto asset appeared to have erased its losses, with most trades settling in the $61,000 to $62,000 price range.

Meanwhile, Woo says he sees $54,000 as the next layer of liquidations, but concedes that this would be difficult to achieve “within the microstructure.”

What are your thoughts on Willy Woo’s BTC price reversal prediction? Share your opinions in the comments section below.