The recent analysis by technical analyst Willy Woo highlighted some important trends in the Bitcoin market. He pointed out that a significant amount of Bitcoin had been moved from exchanges due to selling by governments and distributions from Mt. Gox, leading to a bearish trend. The influx of paper Bitcoin through derivatives like futures and options also contributed to the market crash in early August. However, the subsequent flush out of this paper Bitcoin and leverage was seen as a necessary reset to remove overheated speculation from the market.
Woo emphasized the need for BTC’s price action to become less volatile in order for the market to stabilize. He mentioned that a significant portion of speculation has already left the market, allowing for more spot BTC to be absorbed. In terms of supply and demand, the market has shifted from a short-term bearish phase to a more neutral state. While the current situation may seem like a long consolidation period, Woo pointed out that it is not indicative of a bear market in the long term.
Peter Brandt, another analyst, discussed the possibility of the current bull market cycle becoming the longest post-halving period without reaching a new all-time high. This raised concerns about whether a new all-time high is achievable in the near future. However, Benjamin Cowen, the founder of ITC, offered a different perspective by stating that Bitcoin’s progression through the market cycle is on track compared to previous cycles. This suggests that Bitcoin’s current price levels are in line with historical trends.
Despite some fluctuations, Bitcoin prices hit a weekly high of $61,800 before pulling back slightly to around $60,500 in the Asian trading session. The market has remained range-bound following a major dump earlier in the month. Analysts like ‘Rekt Capital’ have identified key resistance levels, such as $61,420, that need to be overcome for the market to establish a new uptrend. Overall, the current state of the Bitcoin market appears to be in a phase of consolidation and adjustment, with various factors influencing its trajectory in the near future.
Leave a Reply