In the dynamic world of cryptocurrency, a recent analysis by an onchain expert suggests that the primary digital currency, **Bitcoin (BTC)**, experienced a significant drop to **$58,000**. This downturn is attributed to a mix of speculators incessantly initiating new long positions and miners offloading BTC to finance their hardware upgrades. The analyst anticipates a resurgence in BTC’s value following the resolution of the current phase, which involves the elimination of less efficient miners.
**Market Dynamics and Bitcoin’s Descent**
Willy Woo, a renowned onchain analyst for Bitcoin (BTC), has linked the recent dip in BTC’s value to speculative traders who persistently engaged in opening new long positions. According to Woo, this activity provided additional momentum for a series of liquidations, leading to a ‘long squeeze’ that pushed BTC’s price under the **$60,000** threshold.
In a recent update, Woo, who typically steers clear of short-term market predictions, also pointed to BTC miners who are adapting to the new economic environment post-halving. “The selling spree by miners is in full swing as they seek to replace outdated and unprofitable hardware,” stated Woo. This sell-off by miners is a direct consequence of the halving event, which reduced the block reward to **3.125 BTC**, compelling miners to sell more BTC to compensate for their diminished earnings.
**The Phase of Miner Optimization**
Woo’s June 24 analysis describes the current situation as a “phase of miner optimization,” predicting it will pave the way for a BTC price recovery. He supported his forecast with a chart indicating a potential market turnaround. 
Nonetheless, Woo cautions that even with a favorable prediction, BTC must first clear the futures open interest before we can witness a price increase. At the time of his analysis, BTC seemed to have bounced back, with transactions predominantly occurring between **$61,000** and **$62,000**.
Woo speculates that **$54,000** could be the next significant level for liquidations, although he acknowledges the complexity of reaching this point given the current market microstructure.
What do you think about Willy Woo’s prediction for a BTC price rebound? Feel free to share your views below.
