Bitcoin analyst Willy Woo warns that a drop below $58.9K could signal a shift to a bear market. However, in the short term, he anticipates short liquidations between $71-$75k. Woo highlights that Bitcoin consolidating near its all-time high is a positive sign for recovery.
Amidst rising tensions between Israel and Iran, Bitcoin experienced significant volatility, dropping to $61,500 over the weekend. Despite this, the price has partially rebounded, currently sitting at $65,342.71, up 1.5%, with a market cap of $1.3 trillion. Will Woo remains cautiously optimistic about Bitcoin, expecting short liquidations in the $71-$75k range soon.
Bitcoin Analyst Willy Woo Assesses Market Conditions
Willy Woo, a Bitcoin analyst, identifies a crucial support level at $58.9k. He suggests that breaching this level could indicate a shift towards a bear market, signaling caution for investors.
Here's how the markets look to me.
$58.9k STH support, if this breaks we move to a bear market.
CVD selloff has peaked, so a phase of "up" next. CVD measures market orders (impatient buy/sells).
Longer term: still weeks away from a proper bullish environment. pic.twitter.com/NxVwSA4KtT
— Willy Woo (@woonomic) April 15, 2024
Woo highlights that the CVD selloff may have peaked, hinting at a forthcoming upward phase in the market. CVD measures market orders, indicating impatient buy and sell activities. However, he warns that a proper bullish environment might still be weeks away.
According to Woo, the market structure remains consistent with his previous analysis, characterized by sideways movement in March and choppy fluctuations in April. Additionally, the upcoming halving event could introduce further volatility to the market.
Despite the prevailing bearish sentiment, Woo remains optimistic, identifying potential upward levels on the macro indicator. He discloses purchasing during the support retest, adhering to his strategy, reflecting confidence in the market’s future prospects.
Bitcoin Analyst Willy Woo on Market Dynamics and Price Trends
Long Leverage Decrease and Support Levels: Bitcoin analyst Willy Woo discussed recent market dynamics, noting a significant decrease in long leverage down to $60k. He highlighted the importance of the robust $59k STH support, suggesting that breaching this level could indicate a potential bearish trend. However, Woo indicated that short liquidations to the range of $71-75k are more likely in the near term, as price movements are influenced by liquidations.
Accumulation Phase and Future Outlook: Examining demand and supply indicators, among other metrics, Woo expressed confidence in ongoing accumulation during the consolidation phase. He believes this accumulation will eventually propel Bitcoin past its all-time high (ATH). Emphasizing patience, Woo cautioned against impulsive actions, advocating for a strategic approach to investing in Bitcoin.
Significance of Consolidation and Market Maturity: Woo underscored the significance of prolonged consolidation around ATH, explaining that it strengthens price discovery by facilitating the transfer of coins between investors. He viewed Bitcoin’s emergence as a trillion-dollar asset class as a positive development, highlighting its enduring significance in the financial landscape.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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