Renowned on-chain analyst Willy Woo believes that Bitcoin (BTC) may have already surpassed its lowest levels, suggesting a positive outlook for the cryptocurrency. Woo shared with his vast following of 1.1 million individuals on X, a social media platform, that current short-term technical signals indicate a potential reversal in BTC’s price trend.
He highlighted an impending TD9 reversal on the daily candles, expecting a corrective move in BTC’s price with a hidden bullish divergence to counteract the recent overselling in the market. Woo cautioned that while this development signals a positive shift, it’s essential to assess the extent of speculative activity that needs to be resolved before Bitcoin can make significant upward movements, emphasizing the importance of purging futures open interest from the system.
The TD9 reversal refers to the Tom DeMark (TD) Sequential Indicator utilized by traders to forecast possible trend changes based on the closing prices of the previous 13 bars or candles. When the TD Sequential identifies nine consecutive candles closing higher than the fourth previous candle, it generates a TD9 signal.
Additionally, Woo pointed out that Bitcoin faces significant liquidation pressure at the $54,000 level, emphasizing the challenge of surpassing this threshold due to its impact on short-term holders’ pricing—an indicator delineating the transition between bullish and bearish market phases. Navigating this price level is deemed complex given the broader structural dynamics at play.
Currently trading at $60,885, Bitcoin, the leading cryptocurrency by market capitalization, has experienced a marginal decline of over 1% in the last 24 hours.
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