Bitcoin Bulls Beware: ‘Bears Are Still In Control,’ Says Top Analyst – Here’s Why
June 27 2024 - 10:00PM
NEWSBTC
Despite a recent uplift in Bitcoin market price, which saw the
crypto momentarily breach the $62,000 mark, the widespread
consensus among crypto analysts suggests that this increase is
temporary and that the bearish pressure is far from over.
Particularly, prominent crypto analyst Willy Woo voiced earlier
that the minor surge was primarily a “technical” response to
oversold conditions and did not indicate underlying market
strengths. Related Reading: Bitcoin To Hit New Heights? Analyst
Predicts 10x Growth In Few Years — Here’s How Bitcoin Bears Are
Still In Control Diving into Woo’s analysis shared on Elon Musk’s X
platform, Woo remarked that although Bitcoin recently rebounded
from a significant dip below $60,000, fundamental market indicators
remain weak, signifying that the recent price action is not a
reliable indicator of sustained recovery. According to Woo, the
bounce back is driven by technical factors such as the TD9 reversal
and a hidden bullish divergence rather than genuine market
recovery. “The markets would correct for overselling,” Woo
explained, highlighting that current trading activities do not
reflect a shift in the basic supply and demand dynamics essential
for a genuine bullish market turnaround. He further emphasized that
spot buying needs to be substantially increased for a true bullish
sentiment to take hold, which remains lackluster. Nice to see some
of the speculation getting purged the last few days. Still a bit
heavy, still too much speculation. Bears still in control, but
#Bitcoin got so oversold in the liquidations that it’s really hard
to go lower without an uptick. pic.twitter.com/EJeqmaLe0Z — Willy
Woo (@woonomic) June 26, 2024 Woo further points out that
speculative pressures are still rampant, with an excess of
synthetic coins in circulation yet to be replaced by genuine market
purchases. This imbalance underscores a market dominated by
speculation rather than investment, with long-term sustainability
in question. The analyst suggests the market might experience a few
more weeks of stagnation or minimal gains, reminding of the
anticipated bounce from hash rate. Woo noted: And we are still
waiting on hash rate to bounce which is a leading sign that miners
have stopped selling to fund hardware upgrades. So be prepared for
very boring price action for many more weeks. It’s not moon boy
time. It’s time for speculators to liquidate themselves, or until
they get bored and close positions. Then we can move on. Best path
here is to stack spot and let degens die. BTC’s Volatile Journey
And Potential 40% Drop The leading cryptocurrency by market cap has
endured a tumultuous few months, marked by a significant downturn.
After reaching a new high above $73,000 in March, Bitcoin has since
retreated by nearly 20%, recently rebounding to just over $61,000
after briefly dipping to a 24-hour low of $60,606. This volatility
aligns with analyst comments suggesting that bearish trends may
continue to dominate. An analyst recently noted on X that Bitcoin
holders might face further declines. Related Reading: Bitcoin’s
Correction Is Not Done: $54K Could Be On The Horizon, Says Top
Analyst The analyst pointed to the selling patterns of long-term
holders (LTHs) during previous cycles, predicting a potential 40%
drop from all-time highs. Meanwhile, on-chain data indicates that
Bitcoin is hovering near a threshold that typically marks the
transition into the ‘euphoria’ phase of market cycles. Featured
image created with DALL-E, Chart from TradingView
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