Willy Woo, one of the leading analysts of the cryptocurrency markets, believes that Bitcoin (BTC) bears are losing ground after the recent crypto correction. Woo argues that a correction following a prolonged bull market largely liquidates leveraged long positions in the market, causing the bears to gain strength.
Bitcoin’s decline to $60,000 indicates that an obvious support level in the market lies around $59,000. According to Woo, this point represents “terrific” short-term traders (STH) and if Bitcoin falls to this level, it could be a strong sign of a bear market. However, according to Woo’s prediction, BTC bulls may hold this level and there is a possibility that Bitcoin will hold on to this support level before experiencing a sharp decline.
Woo’s to the analysis According to the report, BTC’s short-term future may depend on the liquidation of investors with short positions around $70,000. In this case, it seems likely that the price of Bitcoin will rise rapidly and investors who closed their short positions will be liquidated.
Woo also closely monitors the amount of Bitcoin supply available on crypto exchanges. According to the analyst, BTC’s supply on exchanges has been on a downward trend since October 2022, indicating that it is only a matter of time before demand exceeds supply and pushes Bitcoin to all-time highs (ATH).
“When we look at the demand and supply outlooks, this chart is just one of them, with the accumulation occurring throughout this consolidation, it is only a matter of time before BTC exceeds ATH. Patience is very important, do not degenerate.”
NEWS CONTINUES BELOW
Woo also emphasized that the current consolidation around all-time highs has created a solid support level for BTC. According to Woo, continued accumulation between $60,000 and $70,000 creates a buyer base that will secure BTC’s place as a trillion-dollar asset.
“Remember: the longer BTC consolidates around the ATH, the more money changes hands between investors and price discovery occurs. Once this level is broken, it creates formidable long-term support. Bitcoin as a trillion-dollar asset class is here to stay. This is a good thing.”
At the time of writing, Bitcoin is trading at $63,564, down approximately 4% compared to the previous day.
You can access current market movements here.
