A widely followed analyst thinks Bitcoin (BTC) bears are about to be wiped out after last week’s crypto correction.
Analyst Willy Woo tells his 1.1 million followers on social media platform
Woo says he doesn’t see Bitcoin falling in a straight line as he believes BTC bulls will defend the “formidable” short-term holder (STH) at $59,000. According to the analyst, BTC is more likely to bounce and liquidate traders who were shorting it at around $70,000.
“We reduced the long leverage to $60,000.
To liquidate lower, the price would have broken the formidable STH support at $59,000, which would be a strong sign of a bear market.
More likely, short liquidations to $71,000-$75,000 are next.
The short-term price is a series of liquidations.”
Woo also keeps a close eye on how much Bitcoin supply is available on crypto exchanges. According to the analyst, BTC supply on the exchanges has been on a downward trend since October 2022, indicating that it is only a matter of time before demand overwhelms supply and pushes Bitcoin to new all-time highs (ATH).
“Looking at the supply and demand view, of which this chart is just one, it is only a matter of time before the accumulation taking place during this consolidation pushes us past ATH. Patience is the key, don’t be degenerate.”
Woo also emphasizes that the current consolidation around all-time highs is creating a solid support level for BTC. According to Woo, the continued accumulation between $60,000 and $70,000 creates a base of buyers that will secure BTC’s position as a trillion-dollar asset.
“Remember, the longer BTC consolidates around ATH, the more coins change hands between investors, strengthening price discovery.
This creates formidable long-term support once we break it.
Bitcoin as a trillion-dollar asset class is here to stay.
This is a good thing.”
At the time of writing, Bitcoin is trading at $63,272, down almost 4% in the past day.
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