As a seasoned crypto investor with a few years under my belt, I’ve seen my fair share of market corrections and bull runs. Willy Woo’s analysis piqued my interest as it aligns with some trends I’ve observed in the market lately.
According to technical analysis by Willy Woo, Bitcoin‘s price might decrease to approximately $47,000 during this market correction.
In that situation, a 36% pullback is quite common in the context of bull markets.
On July 8, Woo shared his perspective on the market trends with his 1.1 million followers on X. He noted that markets were currently experiencing a consolidation period, yet he didn’t dismiss the possibility of additional price decreases.
As a crypto investor, I can tell you that this is a significant consolidation period aimed at unnerving investors and forcing some to sell at a loss, reaching what’s called “max pain.” The price of $47k is still within reach, potentially causing further long position liquidations. However, early signs of accumulation are starting to emerge.
Bitcoin Accumulation Phase
The German government’s pressure to sell and the Mt. Gox redemptions were among the reasons he cited for the price drops, yet he emphasized that these weren’t the only contributing factors.
Bitcoin miners continue to sell off their cryptocurrency holdings, according to him. He further explained that until the mining hash rate recovers, as indicated by a ribbon chart, the market conditions will remain bearish. This selling trend is typical following the Bitcoin halving events.
The average hash rate is currently around 600 EH/s, down around 18% from its May all-time high.
Market overview of the current state of #Bitcoin demand and supply.
– miners
– German govt
– ETFs
– FuturesPunctuated in emojis for ELI5ers.
— Willy Woo (@woonomic) July 8, 2024
Regarding Bitcoin ETFs, he remarked that there have been “steady inflows,” implying that ETFs have been purchasing dips in the market. This observation hints at a pattern of accumulation.
As an analyst, I’d express it this way: On July 8, a significant inflow of approximately $295 million was observed in the Bitcoin spot ETF market, marking the highest level of investment since early June, based on data from Farside Investors.
I believe the “futures casino” or speculative “Bitcoin paper traders” have contributed significantly to the recent market turmoil. As I analyzed the situation, I couldn’t help but recall the analogy of a heatmap and a fire. The heatmap represents the potential for price movements, while the actual price fluctuation acts as the igniting force.
As a researcher studying market trends, I’ve noticed that Price has expressed an intention to raise his targets towards $77k in order to liquidate shorts. However, it’s essential to acknowledge that there are significant support levels below this threshold, with $47k being the next notable point of resistance in the opposite direction.
As a crypto investor, I’ve noticed that the market remains heavily speculative with many “paper bets” being placed. Consequently, it could prove challenging for prices to surge under these conditions.
The value of these paper Bitcoin bets has been increasing, leading to an additional supply of around 140,000 Bitcoins in the form of derivatives. However, the spot market’s available Bitcoin supply has remained constant. He further explained, “Considering that Germany only sold approximately 10,000 Bitcoins, it becomes clear which factor instigated the price drop.”
BTC Price Outlook
As a researcher studying market trends, I would interpret Woo’s statement as follows: The market is currently experiencing a local downturn within the larger context of an uptrend, creating an opportune moment for those holding Bitcoin, or “stacking sats,” to accumulate more at lower prices.
As a researcher studying the market trends, I’ve observed that the asset has experienced a gain of approximately over the last 12 hours. Yet, its value remains unchanged during the day, hovering around $57,483. However, it is important to note that the asset has seen a significant decrease of nearly 9% in value throughout the past week. Additionally, its price has dropped by approximately 17% over the course of the past month.
The $58,000 level needs to be broken for BTC to move above resistance again.
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2024-07-09 13:45