Bitcoin price recovers above $61,000 after sharp crash

Cryptocurrencies

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Bitcoin (CRYPTO:BTC) experienced a significant price crash, dropping to $58,400 before rebounding above $61,000.

This volatility led to $360 million in liquidations, predominantly in long positions.

Analyst Willy Woo attributes the crash to a long liquidation cascade and a miners' capitulation due to post-halving hardware upgrades.

Woo suggests that while BTC has recovered, it's crucial to clear out leveraged positions for a sustained upward movement.

Data shows that less than 3% of BTC's open interest has been liquidated, indicating more market adjustments may be needed.