In the world of cryptocurrencies, the Bear seems to have the upper hand over the Bull more often than not. Despite Bitcoin recently testing the $62,000 threshold, sceptics caution that this fleeting uptick will soon dissolve, concluding that the crypto market is still, decidedly, under bearish influence.
Willy Woo, a prominent figure in cryptocurrency analysis, has offered a detailed insight into the recent minor surge. According to Woo, the increase was merely a technical response to oversold scenarios and did not hold any significant implication about underlying market strength.
Woo’s comprehensive analysis, first premiered on Elon Musk’s X platform, implies that Bitcoin’s recent recovery from its sharp fall below the $60,000 mark, shows no promise of lasting long. He clarifies that a few noted fundamental market indicators look troubling, suggesting that the current price trend does not stake any solid claim on future market stability.
Woo further argues that the recent comeback is majorly propelled by technical elements like the TD9 rebound and a concealed bullish divergence. He reasoned that these factors hold sway only to a certain extent and do not indicate a comprehensive market revival.
A resounding correction is expected for overselling, opines Woo. He stresses that the present market dealings do not carry any signs of a shift in the fundamental supply and demand dynamics, an essential element in predicting an impending bullish turnaround.
To cultivate an authentic bullish outlook, he maintains that spot buying needs to see a considerable expansion, a phenomenon which is presently underwhelming. He highlights a noteworthy observation; speculative pressures continue to exert their dominance, suggestive of an excess of synthetic coins still in circulation. These, he insists, are yet to be superseded by authentic market purchases, a requisite for an investment-driven market.
In his distinctive style, Woo indicates that the tumultuous market might not see significant momentum for a few upcoming weeks. He refers to the anticipated hash rate oscillation predicting a potential upturn only when this component starts escalating, signifying that miners have ceased selling to finance hardware upgrades.
Bitcoin, the major player in cryptocurrency by market capital, has weathered several storms over recent months, exhibiting a notable dip. Despite soaring beyond the $73,000 mark earlier in March, Bitcoin has now suffered a considerable decline, nearly 20%, and stands at just over $61,000 after briefly plunging to a 24-hour low of $60,606.
Analysts warn that the volatile signals hint at a continued bearish sway. They even warn of potential further declines with one analyst predicting a drastic 40% decline from the all-time highs based on previous selling patterns of Long-Term Holders (LTHs). Furthermore, on-chain data suggests that Bitcoin is precariously close to the border that usually signals a shift into the ‘Euphoria’ phase of market cycles.
