Bears or Whales – Who Will Win the Bitcoin Battle?

More recently, Bitcoin has faced declines that were due to pressure from the German and American governments, as well as miners.

Last week, the German government's sell-off of BTC led to a short-lived drop in the Bitcoin below $59,000, but it later recovered above $61,000. Investors are cautiously optimistic about further recovery.

However, cryptocurrency analyst Willy Wu cautioned that the recent price increase may be short-lived, noting that market bears are still having an impact.

Despite the correction in Bitcoin's price, Wu highlighted the persistent leveraged trading in the market, suggesting a temporary recovery is needed before potential further declines.

He emphasized that recent price movements are mostly technical rather than fundamental driven, pointing out that a breakout of the Relative Strength Index (RSI) trendline could trigger further technical bounces.

"While it is positive to see a reduction in overleveraged positions in recent days, speculative trading remains prevalent", Wu noted.

Nice to see some of the speculation getting purged the last few days.

Still a bit heavy, still too much speculation.

Bears still in control, but # Bitcoin got so oversold in the liquidations that it's really hard to go lower without an uptick. pic.twitter.com/EJeqmaLe0Z

- Willy Woo (@woonomic) June 26, 2024

He noted that while the market is currently bearish, Bitcoin's extensive liquidations suggest challenges in sustaining downward momentum.