An increasing number of traders entering new long positions was the ‘fuel’ behind Bitcoin’s slump to $60,000, according to a Bitcoin analyst Willy Woo.
A “cascading long squeeze” of Bitcoin (BTC) could explain the asset’s recent drop to 53-day lows as miners continue to sell, according to a Bitcoin analyst.
“Speculators kept adding to new long positions, just adding more fuel for more liquidations in a cascading long squeeze,” pseudonymous Bitcoin analyst Willy Woo wrote in a June 24 X post.
A long squeeze happens when a large number of long-position investors (those betting on a rise in Bitcoin’s price) start selling their holdings as the price falls to cut their losses. This causes the price to drop even more, leading to a cascading effect on other long-position holders.
