- The Bitcoin market has shown a brief upward trend, breaking the $62,000 mark recently.
- However, expert opinions suggest this surge may be temporary and driven by technical factors.
- Popular crypto analyst Willy Woo has indicated that this uptick doesn’t reflect underlying market strength.
Despite a recent rise in Bitcoin’s price, expert analysis suggests the bullish trend may not be sustainable, with bearish forces still in control.
Bitcoin Bears Retain Dominance
In an analysis shared by Willy Woo on social media, he noted that although Bitcoin recently rallied from a dip below $60,000, the core market indicators remain weak. This suggests the current price action does not signify a sustained recovery.
Woo attributes the recent surge to technical adjustments rather than fundamental market improvements. Factors like the TD9 reversal and hidden bullish divergence were cited as reasons behind the bounce.
“The markets are correcting overselling,” Woo stated, emphasizing that the trading activities seen do not reflect a fundamental shift in the basic supply and demand dynamics essential for a true bullish market shift.
Woo pointed out that for a genuine bullish sentiment to emerge, there needs to be a significant increase in spot buying, which currently remains low.
“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.”
— Willy Woo (@woonomic) June 26, 2024
Woo also highlighted the dominance of speculative pressures in the market, with an excess of synthetic coins yet to be replaced by real market investments. This scenario raises concerns about the market’s long-term sustainability.
The analyst suggested a potential period of stagnation or minimal gains, driven by an anticipated bounce from hash rate rebounds. He predicted:
“We are still waiting on hash rate to bounce, signaling that miners have stopped selling to fund upgrades. Expect very boring price action for several more weeks. It’s not moon boy time. It’s time for speculators to liquidate or lose interest. Then, a true market correction can occur. The best approach now is to accumulate spot and let the market speculators exit.”
Bitcoin’s Turbulent Journey and Potential for Further Declines
Bitcoin has faced significant volatility over recent months, experiencing a notable downturn.
After hitting a peak above $73,000 in March, Bitcoin has since slipped by nearly 20%, recently recovering to just above $61,000 after touching a low of $60,606.
This volatility supports analysts’ comments that bearish trends may continue. A recent analysis suggested that Bitcoin holders could face additional declines.
Reviewing past cycles, the analyst noted that long-term holders’ selling patterns indicate a possible 40% drop from recent highs. Current on-chain data reveals that Bitcoin is nearing a threshold typically marking the start of a market cycle ‘euphoria’ phase.
Conclusion
In summary, while Bitcoin’s recent price uptick offers brief optimism, experts caution that the bearish market isn’t over. The focus should remain on long-term investment principles and market fundamentals to gauge future movements accurately.
