Bitcoin Bulls May Soon Be Back in Business
According to Willy Woo, an on-chain analyst, market data indicates that urgent “market sells” responsible for pushing the coin from all-time highs are now decreasing. This positive development may provide support to prices, preventing further sell-offs.
Bitcoin Selling Pressure Easing
This easing pressure can be attributed to the decline in Cumulative Volume Delta (CVD) data, an on-chain indicator that monitors market sentiment and buying and selling aggression from market participants. The drop in CVD suggests that more BTC holders are willing to endure the current market conditions, potentially bolstering prices.
- Woo emphasizes the importance of BTC rejecting selling pressure and overcoming the current short-term weakness.
- The on-chain data indicates that BTC should maintain a price level above $59,600 to sustain the bullish trend.
- The historical significance of the CVD line in separating bullish and bearish territories underscores the importance of BTC remaining above the $60,000 mark.
If BTC fails to hold above these crucial levels and succumbs to bearish pressure, breaking below the CVD threshold could signal the beginning of a new bearish phase.
Despite facing significant selling pressure that has led to a 15% drop from its all-time highs, BTC has found support in the $60,000 to $61,000 range while encountering resistance near its peak of $74,000.
Positive Outlook from Hong Kong Analyst
In a recent interview, Zhu Haokang, the Head of Digital Asset Management in Hong Kong, expressed optimism about Bitcoin’s outlook. Haokang predicts that trading volume will surpass levels seen in the United States, attributing this potential growth to a unique product that offers physical subscription options appealing to BTC miners worldwide.
Hot Take: Bitcoin’s Path Ahead
Considering the decreasing selling pressure and the potential for increased trading activity, Bitcoin could be poised for a resurgence in the coming weeks. The support levels and resistance zones will be crucial indicators of whether the bulls can regain control of the market and propel BTC towards new highs.
By
By
By