Analyst: BTC faces high risk of dropping below $60K

Bitcoin is at risk of a deeper correction in the coming weeks and is highly likely to break below the key $60,000 support level, according to an analysis. In an interview with Bloomberg Television, Bobby Lee, co-founder of hardware wallet manufacturer Ballet, said that recent Bitcoin volatility has been primarily driven by leveraged trading in the spot, futures, and options markets. He predicted that if the crucial $60,000 support level is breached, a wave of long position liquidations could push the price down to the $50,000 to $55,000 range. Lee added that Bitcoin entered a bear market after hitting a new high last October and that investors holding long positions will experience short-term pain. He also suggested that a true capitulation could occur if Bitcoin were to fall 80% from its peak to the $20,000 range.