Should the price of the leading cryptocurrency drop below the short-term holders’ support level of $58,900, the market risks entering a bearish phase, according to analyst and CMCC Crest co-founder Willy Woo.
Here’s how the markets look to me.
$58.9k STH support, if this breaks we move to a bear market.
CVD selloff has peaked, so a phase of “up” next. CVD measures market orders (impatient buy/sells).
Longer term: still weeks away from a proper bullish environment. pic.twitter.com/NxVwSA4KtT
— Willy Woo (@woonomic) April 15, 2024
According to him, the selloff in Cumulative Volume Delta (CVD), which measures market orders (impatient buys/sells), has peaked, indicating an “up” phase is next.
The expert noted that the market structure has not changed since March, although April is “volatile in both directions.” The halving will be another catalyst for volatility.
“Current bearish sentiment is a good bullish sign,” Woo added.
The analyst also suggested that the next level for significant short position liquidations will be $71,000-$75,000.
Considering the supply and demand charts for Bitcoin, he believes it is only a matter of time before “the accumulation during this consolidation pushes us beyond the all-time high.”
“The longer digital gold consolidates around ATH, the more coins change hands from one investor to another, strengthening their price. This creates enormous long-term support when we break it. Bitcoin as a trillion-dollar asset class is here to stay,” emphasized the CMCC Crest co-founder.
On the evening of Saturday, April 13, the price of the leading cryptocurrency fell below $61,000 amid escalating tensions in the Middle East. The next day, digital gold recovered to levels above $64,000. The 24-hour liquidation volume reached $955 million.
Woo clarified that almost every cycle before the halving has seen a bearish phase due to “over-accumulation” of the leading cryptocurrency.
MN Trading founder Michaël van de Poppe noted a similar trend in Bitcoin. In his observations, the asset consolidated at the lows of the current range of $61,000-$71,000.
#Bitcoin consolidating at the range low and hit that level.
Still within the range and capitulation took place across the board.
Expecting to see higher level tests over the upcoming week. pic.twitter.com/oQOFhNONoG
— Michaël van de Poppe (@CryptoMichNL) April 15, 2024
At the time of writing, digital gold is trading at $66,120, up about 2.4% in 24 hours.
Earlier, van de Poppe suggested that the leading cryptocurrency’s price began moving towards a high above $73,000.
Former BitMEX CEO Arthur Hayes previously predicted a potential Bitcoin drop ahead of the halving. The reduction in block rewards is a price catalyst in the medium term, and during this period, the coin will face liquidity outflows, according to the expert.