An on-chain analyst with a large following predicts that Bitcoin bears are in for a rude awakening after the recent crypto correction. Willy Woo, the analyst, shares with his 1.1 million followers on X, a social media platform, that the recent retracement of Bitcoin to $60,000 has eliminated leveraged long positions. He believes that Bitcoin will not continue to decline in a straight line, as he expects BTC bulls to defend the significant short-term holder (STH) support level at $59,000. Woo suggests that it is more likely for Bitcoin to rebound and liquidate traders who shorted at around $70,000. He states, “We flushed out long leverage down to $60,000. To liquidate lower, price would have broken the formidable $59,000 STH support, and a strong sign of a bear market. More likely short liquidations to $71,000-$75,000 is next. Short-term price is a walk of liquidations.”
Woo is also paying close attention to the amount of Bitcoin supply available on crypto exchanges. He notes that BTC’s inventory on exchanges has been decreasing since October 2022, indicating that it is only a matter of time before demand surpasses supply and drives Bitcoin to new all-time highs (ATH). He states, “Looking at views of demand and supply, this chart being only one of them, it’s just a matter of time before the accumulation happening throughout this consolidation squeezes us past ATH. Patience is key, don’t be degenerate.”
Furthermore, Woo emphasizes that the current consolidation around the ATH is establishing a strong support level for Bitcoin. He believes that the ongoing accumulation between $60,000 and $70,000 is creating a base of buyers that will solidify Bitcoin’s position as a trillion-dollar asset. He states, “Remember: the longer BTC consolidates around ATH, the more coins that change hands between investors cementing its price discovery. This creates formidable long-term support once we break it. Bitcoin as a trillion-dollar asset class is here to stay. This is a good thing.”
As of the time of writing, Bitcoin is trading at $63,272, experiencing a decrease of nearly 4% in the past day.