Popular on-chain analyst Willy Woo updates his view on Bitcoin (BTC), suggesting the market is starting to look bullish.
Wow tells are 1.1 million followers on social media platform X that Bitcoin may form a bull flag pattern, paving the way for a breakout.
In technical analysis, a bull flag is seen as a continuation pattern, indicating that an asset is consolidating and gearing up for another rally.
He also says that supply on crypto exchanges is decreasing, which is often a bullish sign. As supply on the exchanges tightens, demand may soon overwhelm supply, pushing up BTC’s price tag.
“Bitcoin Signals:
- Short term: Continuation of the bullish swing, probably a week to go.
- Medium Term: We are seeing a lot of spot BTC being picked up, derivatives exchange stock remains flat, but this could change quickly if we get a short squeeze. The chart pattern forms a bull flag.”
However, the analyst cautions that current demand is not yet bullish.
“Current supply and demand are neutrally bearish, but signs point to us moving into a bullish structure if some liquidations occur. Cautiously optimistic.”
The analyst too warns of the risk that all markets could suddenly plunge in the short term due to deteriorating macroeconomic conditions and subsequently enter a recovery rally.
“Traditional Financial Risk: Bond Yields Falling Could Be a Bad Omen for Averting a Potential Crash, Past Examples 2020 COVID Crash, 2008 [Global Financial Crisis]. In previous cases, this led to a crash before a liquidity-driven long-term rally across all asset classes.”
Bitcoin is trading at $59,495 at the time of writing, down 2.5% in the past 24 hours.
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