Renowned market analyst Willy Woo has predicted a potential uptrend for Bitcoin on the horizon. Despite indications from the TD9 indicator, Woo advises traders to proceed with caution.
Expressing a positive outlook for Bitcoin (BTC), on-chain analyst Willy Woo suggests that the leading cryptocurrency may have already weathered the worst of its recent downturn. In a recent update on the social media platform X, Woo highlighted short-term technical indicators pointing towards a possible reversal in BTC’s price trajectory.
Willy Woo Emphasizes Technical Indicators
Woo highlighted that Bitcoin was on the verge of a TD9 reversal on daily candles, a significant technical indicator in the realm of technical analysis. The Tom Demark Sequential 9 (TDS 9) indicator assists in identifying potential tops and bottoms in a cryptocurrency’s price.
The next critical target for liquidations is at $54k. However, reaching this level is quite challenging within the current market conditions. Woo stressed that hitting this threshold would push BTC into a bearish phase, as it is significantly below the price held by short-term holders, which acts as a defining line between bullish and bearish trends.
Specifically, a TD9 signal occurs when nine consecutive candles close above the previous four candles. If this scenario unfolds as Woo anticipates, Bitcoin could experience a hidden bullish divergence, correcting the recent overselling in the market.
While Woo sees this as a temporary relief for BTC, he also warns that the market is not yet in the clear. He underlines the importance of clearing future open interest to pave the way for a sustained upward movement. Woo believes that purging futures open interest is crucial to eliminating speculative excess and stabilizing the market.
At the time of writing, BTC is trading at $61,639, with a 0.7% increase in the past 24 hours. The market capitalization stands at $1.2 trillion, comfortably above the critical $54,000 level mentioned by Woo. Additionally, trading volume has risen by 3.5% to over $22 billion.
Woo’s analysis arrives amidst heightened volatility in the crypto market, where investors are closely monitoring technical indicators and macroeconomic trends to decipher Bitcoin’s future trajectory. His insights offer valuable perspectives for both short-term traders and long-term holders navigating the complexities of the crypto market.
Sentiments Surrounding Bitcoin
It’s worth noting that Woo is not alone in his bullish sentiment towards Bitcoin’s price. In line with earlier reports from Crypto News Flash, analyst Ali Martinez suggests that Bitcoin could witness a price surge of over 60%, based on the cryptocurrency entering the “oversold territory” thrice in the past two years.
On the contrary, popular crypto analyst Benjamin Cowen expresses concerns over recent fluctuations in gold prices signaling a potential decline in BTC’s value. As previously covered by Crypto News Flash, Cowen draws parallels to a scenario in 2019 when Bitcoin’s rally halted after gold reached all-time highs.
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