Bitcoin and Crypto Market Anticipate Rebound After Leverage Purge Ahead of Halving

Leverage liquidation prior to the Bitcoin halving may lead to a market upswing. Standard Chartered Bank analysts observe lowered leverage conditions following a significant flush-out of leveraged long positions. The analysts believe this less leveraged environment may support Bitcoin's price appreciation, even as targets for end of 2024 remain unchanged.

Bitcoin and Crypto Market Rebound Expected Following Leverage Liquidation Ahead of Halving

Amidst market turbulence leading up to the highly anticipated Bitcoin halving, a Standard Chartered Bank analysis has forecasted a potential upswing in Bitcoin and the broader cryptocurrency market. This optimism stems from the significant liquidation of highly leveraged positions in the run-up to the halving.

Prior to Saturday's halving, Bitcoin experienced a sell-off that liquidated a substantial number of leveraged long positions, pushing the cryptocurrency below the $60,000 mark. However, analyst Geoffrey Kendrick of Standard Chartered Bank believes that the current market conditions are characterized by reduced leverage, creating a conducive environment for price appreciation.

"We are optimistic that the worst has passed and that a less leveraged digital assets market can now resume an upward trend," Kendrick stated confidently.

The recent sell-off purged a significant portion of leveraged long positions, with an astounding $261 million worth of Bitcoin long contracts liquidated on April 13th alone. This substantial liquidation paved the way for potential price gains, as Kendrick noted, "April 13th witnessed the largest daily liquidation since at least October 2023, clearing the path for an upward trajectory, especially considering that the negative news is already reflected in the current price."

Standard Chartered remains steadfast in its end-of-2024 price targets, projecting Bitcoin to reach $150,000 and Ethereum to climb to $8,000. Over the past 24 hours, Bitcoin has exhibited a 0.5% increase, currently trading at $66,700. Ethereum has similarly shown positive momentum, rising by 0.8% to $3,234 within the same period.

The total cryptocurrency market capitalization has experienced a 1.5% gain in the past 24 hours, now standing at an impressive $2.59 trillion. The GM 30 Index, which represents a selection of the leading 30 cryptocurrencies, has also demonstrated a 0.83% increase to 138.50 over the same period.

These positive indicators suggest that the cryptocurrency market may be poised for a rebound following the liquidation of leveraged positions before the halving. Investors are eagerly watching for further developments as the market navigates the post-halving landscape.