Woo believes the bullish signals overpower the bearish ones.
Popular crypto analyst Willy Woo has identified an ongoing power tussle (or tug-o-war, in his words) between demand and supply in the Bitcoin ecosystem.
In a tweet, Woo outlined three bullish and two bearish factors that could decide bitcoin’s (BTC) price trajectory in the near term. He opined that the bullish signals overpower the bearish ones; hence, BTC may likely see more northward movement in the coming months.
The Three Bullish Macro Signals
According to Woo, miner capitulation is over, and the Bitcoin hash rate is recovering. The end of miner capitulation is considered one of the most reliable bullish signals. Bitcoin’s price and hash rate bottomed at the same time that miners launched next-generation mining hardware. As a result, Woo believes the hash rate is “set to scream.”
Highlighting a previous tweet in which he predicted that the market would rally due to the end of miner capitulation, Woo said BTC could see months of “bullishness.” True to his claim, BTC surged above the $60,000 level a day after he made the post, with hash rate recovery preceding the rally.
The second bullish factor is the Puell Multiple, which measures miners’ relative profit to past revenues. Woo called the metric a “1-2 punch macro signal.” The first part entails macro bottoms happening when miners are seeing minimal profit, while the second is a signal bottom that occurs when Bitcoin halving slashes miner rewards by 50%, leading to a bull run.
Per Woo’s analysis, the market is in the second punch of the Puell Multiple, and miners will make substantial profits henceforth. The analyst expects publicly-listed miner stocks to break out and insists that now is a good time for investors to buy into mining.
Furthermore, Woo explained that the setup in global liquidity was an early sign that BTC would soon break out. This is also evident in traditional finance entities increasingly buying risk-on assets like BTC, which often happens when liquidity expands.
On the Bearish Side
On the other side, the bearish signals include a build-up of coins entering spot crypto exchanges from entities like the Mt. Gox trustee and the potential bearish impact on BTC due to the launch of the spot Ethereum exchange-traded funds (ETFs) in the United States.
However, Woo thinks BTC needs to break $73,000 in the short term to “light the fuse to short squeeze” to $77,000 and maintain a steady uptrend from there.
Source: www.cryptopotato.com