Willy Woo, an analyst and co-founder of CMCC Crest, has warned that a downturn in Bitcoin’s price could signal the start of a bear market. Specifically, he suggests that if Bitcoin drops below the critical support level of $58,900, it may trigger a bearish trend in the market.
Here’s how the markets look to me.
$58.9k STH support, if this breaks we move to a bear market.
CVD selloff has peaked, so a phase of “up” next. CVD measures market orders (impatient buy/sells).
Longer term: still weeks away from a proper bullish environment. pic.twitter.com/NxVwSA4KtT
— Willy Woo (@woonomic) April 15, 2024
The expert indicates that the sell-off observed on the cumulative volume delta (CVD), a measure of market orders, has reached its peak, signaling the commencement of a boosting phase. He emphasizes that the market’s structural setup has remained unchanged since March, but April is poised for potential volatility swings in both directions, with the upcoming halving event acting as a catalyst.
Furthermore, the analyst suggests that significant liquidations of short positions may occur within the range of $71,000 to $75,000. With Bitcoin’s supply and demand charts in consideration, he predicts that the ongoing accumulation during this consolidation phase will inevitably propel BTC’s price beyond its previous all-time high.
Echoing similar sentiments, MN Trading founder Michael van de Poppe observes comparable dynamics for Bitcoin. He notes that the asset has been consolidating within the lower boundaries of the current range, spanning from $61,000 to $71,000.
Amid escalating tensions in the Middle East, Bitcoin’s price dipped below $61,000 on April 13. However, the following day saw a swift recovery, with BTC climbing back above $64,000. Notably, on that day, the volume of liquidations surged to $955 million.
