Bitcoin Poised for Next Surge After Potential Leverage Flush, Analysts Suggest

New York, NY — Bitcoin (BTC) is showing resilience in the face of market volatility, trading around $105,464 with a 0.6% daily increase, yet analysts suggest a significant market correction—dubbed a “leverage flush”—may be necessary before the next major price rally.

Leading technical analyst Willy Woo warns that excessive leveraged trading in the market has created conditions ripe for liquidation cascades. “It’s open season on liquidation hunts,” Woo stated, emphasizing that Bitcoin is “waiting to purge the bets before the next swing of all-time-highs.”

The warning comes as Bitcoin futures open interest hit a record $80 billion on May 23, only recently cooling to $72 billion—still a historically elevated level. This suggests that the market remains heavily exposed to derivative-based volatility, with traders betting on BTC’s future price via futures and options contracts.

Woo also pointed to low buying pressure during off-peak periods like weekends and summer months, when large traders (whales) can manipulate price trends more easily, leading to forced liquidations of over-leveraged positions.

Long-Term Outlook Remains Bullish

Despite these short-term risks, analysts maintain a positive long-term outlook for Bitcoin. Once the market undergoes a necessary de-leveraging, it may enter a more stable phase, better positioned for sustainable price growth and potential new all-time highs.

This developing narrative underscores the maturity of the crypto market, where short-term volatility is increasingly seen as a natural and necessary precursor to long-term strength.