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.
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.
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