Bitcoin Consolidation Nearing Completion, Says Willy Woo
Prominent on-chain analyst Willy Woo has identified early signs that Bitcoin consolidation is coming to an end. He notes that the asset has been range-bound for the past month and that futures demand is currently driving the market, which is a bullish sign. Woo also highlights the volatility dynamics, suggesting a larger move is likely. The Bitcoin fundamental strength indicator has turned upwards, indicating a potential upside movement. Glassnode data on the Bitcoin Spent Output Profit Ratio (SOPR) shows similarities to previous bear markets, which were followed by significant breakouts. However, Bitcoin has failed to break resistance above $30K multiple times, and prices have fallen back below $30K in the Asian trading session.
Bitcoin Market and Other Altcoins
The total market capitalization remains flat at $1.24 trillion. On-chain activity suggests slow accumulation at these levels. Ethereum has broken below the $1,900 level and is facing resistance at $2,000. Most altcoins, including Ripple, Cardano, and Solana, are in the red, while Polkadot, Uniswap, and Chainlink are posting gains.
Hot Take
Bitcoin’s consolidation phase seems to be coming to an end, according to Willy Woo. The current market dynamics, including futures demand and volatility patterns, indicate a potential breakout. However, resistance at $30K and recent price declines show that a trend change is not confirmed yet. The overall crypto market remains relatively stable, with slow accumulation at current levels. Altcoins are experiencing mixed performance, with some posting gains while others are in the red.