After strong selling pressure earlier this week, the Bitcoin (BTC) price attempted a bounceback. However, it couldn’t sustain past $63,000 for a long time. As of press time, the BTC price is trading 1.5% down slipping under $61,000 levels. Crypto analyst Willy Woo says that the current pump would be just temporary and the bears are still in control of the show.
Bitcoin Bears Still Have A Strong Hand
Analyst Willy Woo says that although the recent Bitcoin price correction cleared excess leverage in the market, there’s still some froth in the market. He adds that there are still a lot of speculative trades for BTC.
Woo adds that the strong BTC liquidations sent the BTC price to $58,000 into the oversold territory. Thus, a temporary bounce back was mandatory before falling further.
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 added that the current BTC price bounceback is only technical and not fundamental. He also pointed out the presence of a TD9 reversal and a hidden bullish divergence.”So far this technical reversal is playing out,” Woo stated, emphasizing that a break of the RSI trendline would indicate a technical recovery.
Woo stressed that the current BTC reversal is just technical instead of fundamental. “The markets would correct for overselling,” he explained, further adding that this does not necessarily imply that the fundamental demand and supply for Bitcoin justifies further bullish action.
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BTC’s Fundamental Price Structure
Woo added that for the formation of the fundamental bullish structures, the demand must outstrip the supply. For this to happen, the spot buyers must actively purchase the coins from the exchanges, which is happening as of now.
But Woo notes that the ongoing issue currently is that synthetic coins are not being sufficiently replaced. He further stated that there’s a need to purge the speculators creating synthetic coins. “We are still waiting on the hash rate to bounce, which is a leading sign that miners have stopped selling to fund hardware upgrades,” he noted.
Thus Woo added that investors might need to wait for a few more weeks of dull BTC price action. “It’s not moon boy time,” he stated, urging speculators to liquidate their positions and exit the market out of boredom. Woo added that the best strategy currently would be to accumulate spot holdings and allow the speculators to make an exit.
Also Read: Why the Bitcoin Price Can Drop to $50,000 Before Bull Run?
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