Bitcoin’s Future Brightens as Market Sell-offs Begin to Decline

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The signs all point towards a positive upswing for Bitcoin, the cryptocurrency that has become synonymous with surprise leaps and dips in value. Willy Woo, a renowned on-chain analyst, notes that the urgent market sell-offs responsible for toppling Bitcoin from its all-time highs is showing signs of falling. This development could act as a safety net for Bitcoin’s value and help prevent any further drastic sell-offs.

Revealing insights from falling Cumulative Volume Delta (CVD) data, which is an on-chain indicator used to track market sentiment, provide hope for Bitcoin enthusiasts. CVD data offers insight into the buying and selling aggression of market participants and with CVD on a decline, Woo posits that more Bitcoin holders are likely to brace for weathering the storm. Consequently, their decision to hold on may significantly bolster the cryptocurrency’s prices.

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To maintain this possible upswing, Woo insists that Bitcoin must resist subsequent selling pressure and put an end to the currently prevailing short-term weakness. He notes that Bitcoin’s value must stay above the $59,600 mark, the line-in-the-sand representing the demarcation between bullish and bearish zones in the CVD chart.

Moreover, the $60,000 mark becomes a critical threshold for maintaining the uptrend. Falling below this line of defence might embolden bears to push prices down further, potentially heralding a new era of bearish regime.

Presently, Bitcoin is battling immense selling pressure, with its value slipping up to 15% from all-time highs. Bitcoin continues to bob within a toss-up zone, with support around the $60,000-to-$61,000 mark and resistance at an all-time high on the upper end, around $74,000.

A dire forecast from Woo’s analysis suggests any losses dropping below the crucial $60,000 mark could lead Bitcoin into a steep fall, possibly dipping as low as $53,000. This sharp decline could trigger a chain reaction of stop losses, subsequently amplifying the sell-off.

However, the imminent launch of spot Bitcoin Exchange-Traded Funds (ETFs) in Hong Kong could potentially serve as a much-needed rejuvenator for Bitcoin’s value. Bitcoin’s price observed a sharp increase following the approval of ETFs in January, with prices soaring beyond previous ceilings.

Institutional involvement has historically played a pivotal role in Bitcoin’s performance. However, with inflows gradually dwindling in the latter half of April, all eyes are focused on the outcome of the spot Bitcoin ETFs launching in Hong Kong on April 30.

In a recent interview, Zhu Haokang, the Head of Digital Asset Management in Hong Kong, exuded optimism. Haokang expects trading volume in Hong Kong to overshadow those observed in the United States. The exuberant executive pointed out that the new product is unique in offering a physical subscription that holds greater appeal for Bitcoin miners. Moreover, the global purview of the product promises to draw investors from regions as diverse as Singapore to the Middle East.