Bitcoin (BTC) has extended its decline after failing to clear the $65,000 psychological threshold. Analyst Joao Wedson warns that unliquidated long positions below $57,000 could trigger a major liquidation event, potentially dragging the price lower. Wedson noted a similar pattern in 2022, when a final plunge preceded a bottom. On-chain data supports caution: spot market netflows show thin accumulation over the past 30 and 50 days, with only -$412 million in net buying recently. Meanwhile, exchange reserves have climbed to 2.71 million BTC, indicating increased selling readiness. Despite the risk, Wedson sees such liquidations as potential accumulation opportunities.
Bitcoin has extended its decline, struggling once again to clear the $65,000 psychological threshold after another failed run. Even as optimism builds around a broader rally, analyst Joao Wedson has warned that the risk of a deeper decline remains firmly in place.
Wedson pointed to the liquidation levels below $57,000 as a major concern. He argued the unliquidated longs stacked there could trigger a massive liquidation event and force Bitcoin lower. He noted a similar pattern in 2022, when the price plunged one final time before finding its bottom, a sequence he expects could repeat. “If another large liquidation event comes, it could create one of the most interesting opportunities to position,” Wedson said.
Demand for Bitcoin does not yet look strong enough to support a bullish rally. The spot market netflow shows buying over the past 30 days has run well below what a bullish market would typically produce. Bitcoin’s spot netflow recorded -$412 million, marking net accumulation as coins left exchanges, though the figure stays modest. Over the past 50 days the netflow peaked at only -$1.10 billion. Over the past 15 days, Bitcoin netflows totaled $182 million in sell-offs.
The bigger concern is Bitcoin’s balance across exchanges, which has been climbing. Exchange Reserves have trended higher, with the total balance held on exchanges reaching 2.71 million BTC. A rise in Exchange Reserves usually means traders have moved more Bitcoin onto exchanges, placing the asset in a selling position. For now, the setup keeps Bitcoin exposed to further downside.
