Following the intense selling pressure that occurred earlier this week, the price of Bitcoin (BTC) attempted to bounce back. However, it could not maintain it for an extended period beyond $63,000. At the time of this publication, the price of bitcoin is trading 1.5% lower, falling below the $61,000 threshold. Willy Woo, an expert specializing in cryptocurrencies, believes that the current pump will only be transitory and that bears will continue to be in front of the show.
Bitcoin Bears Remain Strong
Analyst Willy Woo asserts that even though the recent decline in the price of Bitcoin eliminated excessive leverage in the market, there is still some foam in the trading environment. He also mentions that there are still many speculative trades in Bitcoin. Woo goes on to say that the heavy BTC liquidations caused the price of BTC to reach $58,000, which is the zone of oversold conditions. To prevent further decline, it was necessary to have a brief period of recovery.
Additionally, Woo stated that the current bounceback in the Bitcoin Bears Still Rule price is merely technical and not fundamental. He also highlighted the existence of a TD9 reversal and a concealed bullish divergence. Woo said, “So far, this technical reversal is playing out,” he emphasized that a break of the RSI trendline would signal a technical rebound.
In his statement, Woo emphasized that the current reversal in Bitcoin is merely technical and not even fundamental. “The markets would correct for overselling,” he added, adding that this does not necessarily suggest that the primary demand and supply for Bitcoin justify additional bullish action, even though it implies that the markets would correct for overselling.
Fundamental BTC Price Structure
Woo said there must be more demand than supply for the basic bullish structures to form. For this to happen, the spot purchasers must actively purchase the coins from the exchanges that are currently taking place.
However, Woo points out that the problem still exists at the moment: synthetic coins are not being adequately replaced. He also claims that there is a need to eliminate the speculators producing synthetic coins. “We are still waiting for the hash rate to bounce, which is a leading sign that miners have stopped selling to fund hardware upgrades,” he remarked. We are still monitoring the situation.”
According to Woo, investors may have to wait a few more weeks for lacklustre price action in Bitcoin, before making any decisions. He said, “It’s not moon boy time.” He urged speculators to sell their positions and leave the market since they found it boring. Woo noted that the most effective current strategy would be to amass spot holdings and allow the speculators to get out of the market.
