Crypto analyst Willy Woo is predicting a potential extended correction for Bitcoin (BTC). He believes the cryptocurrency has until Monday to avoid a bearish signal on its weekly chart.
Bearish Divergence Looms
Woo, who boasts a large following on X (formerly Twitter), explained that a bearish divergence is likely if Bitcoin doesn’t rally. This happens when the price makes higher highs, but a momentum indicator like the Relative Strength Index (RSI) makes lower highs – a sign of weakening bullish momentum. He warned his followers that a divergence could mean a prolonged period of sideways or downward price movement.
Strong Fundamentals, Technical Resistance
Woo, using data from his firm Bitcoin Vector, says Bitcoin’s underlying strength remains despite the potential correction. He attributes the possible downturn to technical resistance in the form of the bearish divergence, suggesting the recent price surge may have been too rapid. He describes it as Bitcoin “equalizing” after a faster-than-usual rally.
Macro Forces Over Halving Cycles?
Woo also suggests that Bitcoin’s price is becoming less predictable and less tied to its traditional four-year halving cycles. He believes that global economic factors now play a more significant role in Bitcoin’s price movements, making traditional cycle predictions less reliable. He views Bitcoin as a leading indicator of broader global economic trends.
Current Bitcoin Price
At the time of writing, Bitcoin is trading around $104,737. (Note: The price is subject to change).
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always conduct your own thorough research before making any investment decisions.
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