The price of Bitcoin (BTC) has likely already bottomed from a sharp pullback that followed new all-time highs last week, according to popular price analyst Willy Woo.
The analyst provided a list of âgood newsâ and âbad newsâ surrounding Bitcoinâs fundamentals on Thursday, comparing the assetâs recent consolidation to that of past bull market cycles.
Woo began with a look at Bitcoinâs Spent Output Profit Ratio (SOPR), an on-chain metric gauging whether the average Bitcoin transaction is currently realizing a profit or a loss. The ratio recently spiked to highs not seen since January 2021, suggesting high profit-taking, and foreboding a lengthy consolidation period.
After tapping $74,000 last week, the asset slid back to $61,000 on Wednesday and has now slightly bounced back to $65,200. The 17% pullback is reminiscent of when Bitcoin broke all-time highs during its previous cycle, experiencing a 31% correction at the time.
âIMO this is typical of a freak out spaz before a pump, need to shake the weak hands,â wrote Woo.
Bitcoinâs âexpected inflowsâ also appear to have bottomed â a measure of the marketâs expected buying pressure based on Bitcoinâs 24-hour simple moving average.
Not all looks bullish, however: long interest is still built up within Bitcoinâs perpetual futures market, which still needs to draw down by 10% to 20% before returning to a normal range.
Woo noted that March has historically been a sideways trading month while April may get âchoppy in both directionsâ based on present data. In the long term, he says macro structure âremains bullish.â
According to an on-chain analysis by CryptoQuant, Bitcoin miners have ramped up their BTC sales in recent months, taking profit following as the coin appreciates in value. Even short-term holders have started to take profit, mimicking patterns typically seen during previous cycle peaks.
Bitcoin spot ETFs in the United States have also seen an unprecedented wave of outflows this week, losing over $700 million in the past three days alone.
The post The Bottom Is In On Bitcoinâs Latest Pullback, Says Willy Woo appeared first on CryptoPotato.
The analyst provided a list of âgood newsâ and âbad newsâ surrounding Bitcoinâs fundamentals on Thursday, comparing the assetâs recent consolidation to that of past bull market cycles.
Has Bitcoin Bottomed Yet?
Woo began with a look at Bitcoinâs Spent Output Profit Ratio (SOPR), an on-chain metric gauging whether the average Bitcoin transaction is currently realizing a profit or a loss. The ratio recently spiked to highs not seen since January 2021, suggesting high profit-taking, and foreboding a lengthy consolidation period.
After tapping $74,000 last week, the asset slid back to $61,000 on Wednesday and has now slightly bounced back to $65,200. The 17% pullback is reminiscent of when Bitcoin broke all-time highs during its previous cycle, experiencing a 31% correction at the time.
âIMO this is typical of a freak out spaz before a pump, need to shake the weak hands,â wrote Woo.
Bitcoinâs âexpected inflowsâ also appear to have bottomed â a measure of the marketâs expected buying pressure based on Bitcoinâs 24-hour simple moving average.
Not all looks bullish, however: long interest is still built up within Bitcoinâs perpetual futures market, which still needs to draw down by 10% to 20% before returning to a normal range.
Woo noted that March has historically been a sideways trading month while April may get âchoppy in both directionsâ based on present data. In the long term, he says macro structure âremains bullish.â
Bitcoin ETF Reversal
According to an on-chain analysis by CryptoQuant, Bitcoin miners have ramped up their BTC sales in recent months, taking profit following as the coin appreciates in value. Even short-term holders have started to take profit, mimicking patterns typically seen during previous cycle peaks.
Bitcoin spot ETFs in the United States have also seen an unprecedented wave of outflows this week, losing over $700 million in the past three days alone.
The post The Bottom Is In On Bitcoinâs Latest Pullback, Says Willy Woo appeared first on CryptoPotato.
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