Analyst believes Bitcoin’s return to $50K price level highly improbable

According to a crypto analyst, the chances of Bitcoin (BTC) dropping to $50,000 in the near future are unlikely due to its frequency of reaching higher support levels and the lack of excessive speculation in the derivatives markets. Dylan LeClair, a senior analyst at digital asset fund UTXO Management, explained in an analyst note on April 7 that if Bitcoin rises to the $70,000-$75,000 range, it will put significant pressure on short positions. CoinGlass data shows that if Bitcoin reaches $70,000, about $174.17 million will be liquidated, while hitting $75,000 would result in approximately $830 million in liquidations. LeClair believes that a decline to $50,000, which would trigger liquidation of long positions, is unlikely given the recent price shifts and the increasing support levels. He cited BlackRock’s update to its Bitcoin ETF prospectus on April 5, which added five major Wall Street firms as new authorized participants, as evidence supporting his claims. The article also mentions the upcoming Bitcoin halving event, set for April 20, which occurs every four years and cuts miner block rewards by 50%. Crypto trader Rekt Capital believes there is still potential for upward movement in the short-term, stating that the market is only about one-third through the “bull market” phase. However, the article advises readers to conduct their own research before making any investment decisions.