The Price of bitcoin: Willy Woo’s Analysis

Price analyst Willy Woo believes that bitcoin (BTC) has already hit its lowest point after a recent sharp decline following new all-time highs last week.

bitcoin‘s Recent Performance

Woo examined bitcoin‘s Spent Output Profit Ratio (SOPR), a metric that indicates whether the average bitcoin transaction is currently profitable or not. The ratio has recently reached levels not seen since January 2021, implying significant profit-taking and signaling a prolonged consolidation phase.

After reaching $74,000 last week, bitcoin fell to $61,000 on Wednesday, before bouncing back slightly to $65,200. This 17% pullback is similar to previous cycles where bitcoin experienced a 31% correction after breaking all-time highs.

Despite signs of a bottom in terms of “expected inflows,” there is still lingering long interest in bitcoin‘s perpetual futures market that needs to decrease by 10% to 20% to return to normal levels.

While March historically tends to be a sideways trading month, Woo suggests that April could see volatile movements in both directions based on current data. However, he remains bullish on the long-term macro structure of bitcoin.

“Overall, it’s a patience game. The short-term consolidation bottom is probably in,” said Woo. “There’s a chance we may consolidate right into the halvening which normally brings downward volatility.”

bitcoin ETF and Miners’ Sales

According to on-chain analysis by CryptoQuant, bitcoin miners have been increasing their BTC sales in recent months to capitalize on the appreciation in value. Short-term holders have also begun to take profit, following patterns usually seen during previous cycle peaks.

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In the United States, bitcoin spot ETFs have experienced a significant wave of outflows this week, losing over $700 million in the past three days alone.





### News source: cryptopotato.com

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