Bitcoin (CRYPTO:BTC) faces potential massive futures liquidations ahead, driven by recent market volatility and heightened investor bullishness.

Following a recent dip to $53,300, BTC saw significant long liquidations totaling $263 million over three days, the second-highest figure in recent weeks.

Analyst Willy Woo predicts further liquidations could follow, with about half a million open long contracts at risk if BTC's price continues to decline.

Currently stabilising around $56,961, BTC's ability to hold above $55,000 will be crucial to avoiding deeper drawdowns and initiating a recovery towards $60,000.