Bitcoin, along with the broader cryptocurrency market, is primed for potential upside as highly leveraged positions were liquidated ahead of the recent halving event, according to analysis from Standard Chartered Bank released on Tuesday.
In the days leading up to the Bitcoin halving on Saturday, a significant purge of leveraged long positions occurred, resulting in Bitcoin’s price dipping below the $60,000 mark.
Analysts at Standard Chartered, led by Geoffrey Kendrick, noted that the current market environment is characterized by reduced leverage, creating favorable conditions for Bitcoin’s price to appreciate.
“We believe that the worst has passed, and with a market less burdened by leverage, digital assets have the potential to trend higher,” Kendrick stated.
The recent sell-off saw the liquidation of a substantial volume of leveraged long positions, including over $261 million worth of Bitcoin longs on April 13 alone. Kendrick emphasized that this event has cleared the path for a potential upward movement in prices, particularly as negative sentiment has already been priced in.
Standard Chartered’s analyst note reiterated their end-of-2024 target price levels of $150,000 for Bitcoin and $8,000 for Ethereum.
In the past 24 hours, Bitcoin has seen a 0.5% increase in price, reaching $66,700, according to data from The Block’s Price Pages. Ether, the native cryptocurrency of the Ethereum network, posted a 0.8% rise to $3,234 during the same period.