June 21, 2024

Bitcoin has dropped to the $67,000-68,000 price range today following a strong rejection at $70,000. Although BTC is in a consolidation phase, on-chain metrics suggest a bullish phase ahead. Crypto analyst Willy Woo shares insights on Bitcoin’s recent price action.

Analyst Willy Woo Analyzes BTC Performance Metrics

Willy Woo says BTC has spent two and half months of consolidation driven by bullish investor demand. He believes this consolidation period is beneficial for BTC. Based on Woo’s analysis, the consolidation phase gives BTC more room to rise before hitting its peak value in the ongoing market cycle.

According to Woo, the net capital inflows to the Bitcoin network hit bottom during the consolidation phase. However, the inflows increased massively in May due to increased investor interest in spot Bitcoin ETFs.

The daily demand for the spot BTC ETFs is now higher than the daily BTC mined by a large margin. And BlackRock’s IBIT ETF has overtaken Grayscale’s GBTC.

Further, the analyst highlighted a surge in the demand for Bitcoin futures markets. For context, futures are binding contracts to trade an asset at a fixed price on a particular date.

Woo says that the rise in demand for futures was noticeable mainly among retail traders. Moreover, the funding rate for perpetual swaps also increased, confirming interest from retail traders.

Meanwhile, a large amount of Bitcoin has been moved from different exchanges due to whale accumulation in this consolidation phase.

In his analysis of Bitcoin’s performance, Woo used the Bitcoin Macro Oscillator (BMO) to show its performance. He noted that the BMO has moved one level down and has two or three levels to climb before a macro market top. Therefore, he believes Bitcoin has yet to attain its peak price in the current cycle and will rise higher soon.

Bitcoin Demand and Supply Zones Critical to Next Price Move

Bitcoin trades below $68,000, with stiff pressure from bears at critical resistance zones. According to Woo, the $73,000 price level is a significant resistance point to Bitcoin’s uptrend.

Woo believes there will be significant liquidations for sellers if Bitcoin manages to break above $72,000. He stated that these liquidations could drive Bitcoin above $75,000 and ultimately set a new all-time high.

What Next for Bitcoin?

BTC’s has remained below the $69.560 resistance level after its decline on May 23. It has found support at the $67,194 price level. However, pressure from the sellers might drive it down even further.

Meanwhile, the RSI indicator is dropping from the neutral zone at 53.60. This implies that the sellers are in control and will likely further force BTC’s price to decline.

The MACD indicator is dropping below its signal line, confirming the bearish sentiment for Bitcoin. So, Bitcoin has entered into a bearish phase, which is likely for the short term before it resumes its rally. Based on its current performance, it will likely decline to the $67,194 support level in the coming days.

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