CMCC Crest co-founder and analyst Willy Woo has made a prediction that a crypto bear market could be on the horizon if Bitcoin drops below $59,000.
Woo explained that if the price of Bitcoin falls below the $58,900 support level for short-term holders, it could signal the start of a bearish phase for the market. He pointed out that the sell-off on the cumulative volume delta (CVD), which measures market orders, has reached its peak, indicating that a boost phase is underway. While noting that the market structure has remained unchanged since March, Woo highlighted that April is a period of volatility in both directions, with the upcoming halving event serving as another catalyst.
The analyst also mentioned that the next significant level for liquidations of short positions could occur in the $71,000 to $75,000 range. With Bitcoin’s supply and demand charts showing signs of accumulation in the consolidation phase, Woo believes it’s only a matter of time before BTC surpasses its all-time high.
MN Trading founder Michael van de Poppe shared similar insights on Bitcoin’s current dynamics, noting that the asset has been consolidating within the $61,000 to $71,000 range.
On April 13, Bitcoin’s price dropped below $61,000 due to escalating tensions in the Middle East. However, the following day saw BTC recover to levels above $64,000, with liquidations totaling $955 million during that period.
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