As a seasoned researcher with a strong background in cryptocurrencies and market analysis, I have closely followed Willy Woo’s insights for quite some time now. His latest analysis of Bitcoin’s price trajectory based on the ongoing power struggle between demand and supply is particularly intriguing to me.
Expert here: According to well-known cryptocurrency analyst Willy Woo, there’s a persistent struggle (or battle of wills, as he puts it) taking place between demand and supply forces within the Bitcoin market.
In a recent tweet, Woo identified three positive and two negative elements that could influence bitcoin’s (BTC) price trend in the short term. He expressed his belief that the bullish indicators have greater impact; therefore, it’s plausible for BTC to experience further upward momentum over the next few months.
The Three Bullish Macro Signals
Based on Woo’s analysis, the miner capitulation in the Bitcoin network has ended, and the hash rate is on an upward trend once again. This event is widely regarded as a bullish indicator for the cryptocurrency market. The price of Bitcoin and its hash rate reached their lowest points simultaneously, marking the entry of new-generation mining equipment into the market. Consequently, Woo anticipates that the hash rate will experience significant growth.
Woo pointed to a past tweet where he foresaw a market upturn due to miner capitulation ending. According to him, Bitcoin could experience prolonged “bullishness” as proven by its subsequent surge above $60,000 and hash rate recovery within a day of his post.
As an analyst, I would explain the Puell Multiple as a metric that calculates the relative profitability of Bitcoin mining based on past revenues. Woo referred to it as a “1-2 punch macro signal.” The initial part signifies that market bottoms tend to occur when miners experience meager profits. Conversely, the second part serves as a bullish indicator when Bitcoin undergoes halving, which reduces miner rewards by 50%, instigating a mining profit squeeze and subsequently leading to a bull run in the price of Bitcoin.
Based on Per Woo’s analysis, I believe we are in the midst of the second surge of the Puell Multiple in the crypto market. This signifies that miners are likely to reap substantial profits moving forward. As an investor, I would recommend closely watching publicly-traded miner stocks as they may experience a breakout soon. This could present a promising opportunity for investors looking to enter the mining sector.
As a crypto investor, I’ve noticed Woo’s explanation that the expanding global liquidity situation is an early indicator of Bitcoin’s imminent breakout. This trend becomes even clearer when traditional finance institutions start purchasing risk-on assets like Bitcoin, which tends to occur during periods of increased liquidity.
On the Bearish Side
From the opposing perspective, indicators pointing towards a bearish trend include an increase in cryptocurrency transfers from entities such as the Mt. Gox trustee to spot exchanges and the possible negative influence on Bitcoin due to the debut of U.S. spot Ethereum ETFs.
Woo believes that for Bitcoin to ignite a significant short squeeze and continue its upward trend, it first needs to surpass the $73,000 mark in the near term.
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2024-07-24 17:59