B.TOP Founder Jiang Zhuoer Warns of Bitcoin Correction After Leveraged Liquidations
Jiang Zhuoer, founder of the B.TOP mining pool, has assessed Bitcoin’s short-term price trajectory and warned that a significant correction could follow the liquidation of highly leveraged positions in the market.
Key Liquidation Zones Identified
According to Zhuoer’s analysis, the most probable scenario involves Bitcoin first clearing an intense liquidation zone above $76,000. During the same period, Ethereum is expected to test a liquidation zone around $2,665, which would eliminate a substantial portion of short positions at higher levels.
Two Divergent Scenarios Post-Liquidity Clear
After Bitcoin clears liquidity above $76,000, Zhuoer outlined two distinct scenarios that could unfold:
Scenario 1: Recovery Above $75,000
If Bitcoin recovers without falling below the $75,000 support level, Zhuoer states the rally could extend toward $80,000. The analyst believes the price could even test the strong resistance zone between $83,000 and $84,000. However, Zhuoer cautions that a larger correction could follow such an advance.
Scenario 2: Break Below $75,000 Support
Should Bitcoin lose the $75,000 support level, a deeper correction is expected that would mirror the upward movement originating from $64,000. In this case, Zhuoer predicts Bitcoin could decline to the $70,000-$72,000 region before entering the next phase of the bull market.
Upcoming Catalysts and Strategic Positioning
Zhuoer highlighted that an expected vote on a bill next week, combined with developments from the Federal Reserve, will serve as important catalysts that could determine market direction. Due to this uncertainty, Zhuoer explained he is pursuing a more balanced strategy against market direction, maintaining a full short position in Bitcoin and a full spot position in Ethereum.
This is not investment advice.
