The price of Bitcoin (BTC) tried to rebound earlier this week following intense selling pressure. But it was never able to maintain above $63,000 for very long. As at the time of writing, the price of bitcoin is down 1.5% and below $61,000. According to cryptocurrency analyst Willy Woo, the bears are still in charge and the recent pump is only temporary.
Bears in Bitcoin Are Still Holding Strong
Even though the recent decline in the price of Bitcoin removed excess leverage from the market, according to analyst Willy Woo, there is still some froth. He continues by saying that there are still a lot of speculative Bitcoin deals.
Woo continues, saying that the robust BTC liquidations drove the price of BTC into oversold territory, reaching $58,000. It was therefore necessary to take a brief respite before descending any lower.
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 went on to say that the current BTC price rebound is purely technical rather than fundamental. He also highlighted the existence of a concealed bullish divergence and a TD9 reversal.”This technical reversal is playing out so far,” Woo said, stressing that a technical rebound would be indicated by a break of the RSI trendline.
Woo was clear in saying that the present BTC reversal is purely technical rather than fundamental. He clarified, “The markets would correct for overselling,” but he went on to say that this does not necessarily mean that the underlying supply and demand for Bitcoin warrant more bullish activity.
The Basic Price Structure of Bitcoin
Woo continued, “The demand must exceed the supply in order for the fundamental bullish structures to form.” For this to happen, the spot purchasers must aggressively purchase the coins from the exchanges, which is happening as of now.
However, Woo points out that the current problem is that there isn’t enough replacement of synthetic money. He went on to say that the speculators who are minting fake coins must be eliminated. The hash rate is still not rising, he said, which is a strong indication that miners are no longer selling to pay for hardware upgrades.
Woo continued by saying that investors could have to wait a few more weeks for boring BTC price movement. He told speculators, “It’s not moon boy time,” and urged them to sell their holdings and get out of the market out of boredom. Woo noted that the ideal plan today would be to build spot holdings and let the speculators to make an exit.
