Bitcoin analyst Willy Woo believes a crucial moment is approaching for the cryptocurrency as the bearish trend fades.
Bearish Momentum Easing
Woo notes that the cumulative volume delta (CVD) indicator, which measures buying and selling volume, is showing signs of less bearishness. He highlights a key level of $59,600 that has historically separated bullish and bearish regimes, and Bitcoin needs to remain above it.
Bullish Indicators Emerge
Woo also points to declining Bitcoin holdings on exchanges, which could indicate more coins are being held in cold storage and less likely to be sold. Additionally, the Bitcoin Risk Signal, which gauges the risk of a significant price drop, has been decreasing.
Bearish Charts Linger
However, Woo acknowledges that weekly and monthly Bitcoin charts still indicate bearish momentum. He emphasizes that Bitcoin needs to break this trend to reverse the bearishness.
Bitcoin’s Current Position
At the time of writing, Bitcoin is trading at $63,001, down 4.6% over the past week. Woo believes Bitcoin is at a critical juncture, with technical indicators pointing bearish while fundamental signals suggest bullishness. The macro liquidity environment will likely play a significant role in determining Bitcoin’s next move.
