Bitcoin Bears Still In Control, Here’s Why BTC Price Pump Is Temporary

by

As a seasoned crypto investor with several years of experience, I share Willy Woo’s perspective on the current Bitcoin market situation. The recent price correction was necessary to clear excess leverage in the market, but it also created an oversold condition that led to a temporary bounceback. However, the bears are still in control, and any gains are merely technical and not fundamental.

Following intense attempts by buyers to push Bitcoin (BTC) prices higher earlier this week, the cryptocurrency briefly reached a resistance level at $63,000. However, it was unable to maintain its gains for an extended period. As of now, the Bitcoin price has retreated 1.5%, falling below the $61,000 mark. Crypto analyst Willy Woo predicts that the recent price surge is merely a temporary phenomenon, with bears continuing to have significant influence over the market’s direction.

Bitcoin Bears Still Have A Strong Hand

As a researcher examining the current state of the Bitcoin market, I’ve noticed that the recent price correction effectively eliminated excessive leverage within it. However, I cannot ignore the presence of lingering speculation in the form of numerous speculative trades surrounding Bitcoin.

As a crypto investor, I’ve noticed that the significant Bitcoin (BTC) sell-offs led to a sharp drop in price down to $58,000, entering the oversold region. Consequently, it was only natural for a brief rebound to occur before potentially plunging even further.

Nice to see some of the speculation getting purged the last few days.

Still a bit heavy, still too much speculation.

Despite bears maintaining their grip, Bitcoin’s extreme selling during liquidations makes it challenging for prices to drop further without a brief recovery.

— Willy Woo (@woonomic) June 26, 2024

As a researcher studying the cryptocurrency market, I’ve noticed that Woo has expressed his viewpoint on the recent bounceback in Bitcoin’s price. He believes this rebound is merely technical and not based on any fundamental changes in the market. Furthermore, he’s identified a TD9 reversal and a hidden bullish divergence.

Bitcoin Bears Still In Control, Here’s Why BTC Price Pump Is Temporary

As a researcher studying the cryptocurrency market, I want to emphasize that the recent reversal in Bitcoin’s price is primarily a technical issue rather than a fundamental one. In simpler terms, this means that the markets are correcting themselves after an overselling period. However, it does not automatically indicate that the current demand and supply levels for Bitcoin justify further bullish trends.

BTC’s Fundamental Price Structure

Woo explained that in order for the foundational bullish formations to take shape, there needs to be greater demand than supply. This can occur when coin buyers actively purchase tokens from exchanges, a trend that’s currently underway.

Woo points out that a significant problem right now is the insufficient replacement of synthetic coins in circulation. He emphasized the importance of getting rid of speculators producing these synthetic coins. He added, “We’re holding out for the hash rate to rebound, which typically indicates miners have ceased selling to finance hardware upgrades.”

According to Woo’s perspective, investors may have to endure some more weeks of lackluster Bitcoin price movement. He advised against getting overly excited, telling speculators, “It’s not yet time for the moon.” Instead, he recommended that investors focus on acquiring spot holdings and be patient, giving speculators an opportunity to exit the market due to boredom.

Read More

2024-06-27 07:36