Bitcoin Faces Critical Moment as Bearish Momentum Subsides, Says On-Chain Analyst
Renowned on-chain analyst Willy Woo believes that Bitcoin (BTC) is approaching a crucial juncture as he observes a decrease in bearish momentum. Woo, who has a following of 1.1 million on the social media platform X, suggests that key indicators point to a potential bullish reversal for Bitcoin.
In his analysis, Woo highlights the significance of Bitcoin’s cumulative volume delta (CVD), an indicator that identifies divergences by comparing buying and selling volume over a specific timeframe. According to Woo, the CVD is showing signs of becoming less bearish, indicating a subsiding bearish regime. He emphasizes that Bitcoin needs to remain above the $59,600 level, historically the threshold between bullish and bearish trends.
Woo further notes that the decline in Bitcoin held on crypto exchanges can also be interpreted as a bullish signal. This decline suggests that more coins are being held in cold storage, making them less readily available for immediate sale.
Additionally, Woo highlights the Bitcoin Risk Signal as another bullish indicator. This signal evaluates BTC’s network flows in relation to price action and measures the risk level of a significant price dip. According to Woo, the risk signal has been decreasing, which is a positive development for Bitcoin.
However, Woo acknowledges that the weekly and monthly Bitcoin charts currently demonstrate bearish momentum. He points out that the bearish divergence observed on the weekly candles, soon to be reflected in the monthly candles, needs to be broken through with a significant price surge.
As of the time of writing, Bitcoin is trading at $63,001, experiencing a 4.6% decline over the past week.
Disclaimer: The opinions expressed in this article are not investment advice. Investors should conduct their own research before engaging in high-risk investments in Bitcoin, cryptocurrency, or digital assets. Please be aware that all transfers and trades are undertaken at your own risk, and any losses incurred are your responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, and it is not an investment advisor. Kindly note that The Daily Hodl participates in affiliate marketing.
Source: Willy Woo/X
