- Willy Woo forecasts major Bitcoin rally post-miner capitulation.
- Monitor Bitcoin hash ribbons for buying signals, advises Woo.
- Bitcoin trading at $65,088, down nearly 7% this past week.
Bitcoin could be poised for a major rally, but not before further market decline, according to on-chain analyst Willy Woo. In a recent social media post, Woo outlined his prediction, highlighting the importance of monitoring key indicators like Bitcoin hash ribbons for signs of a potential market turnaround.
Woo explained that the current market stagnation is necessary to remove weaker elements from the system. “I know it sucks, but BTC is not going to break all-time highs until more pain and boredom plays out,” he said. However, he reassured investors that once miners have capitulated, a rally typically follows.
Citing data from analytics firm LookIntoBitcoin, Woo elaborated on the Bitcoin hash ribbons. This indicator is used to detect periods when miners are under extreme stress, often selling their mined BTC to cover expenses, which puts downward pressure on Bitcoin prices. A compression in these ribbons typically precedes a clear market recovery, as the selling pressure eases and stronger miners consolidate their positions.
Woo also touched upon the speculative nature of current investments in Bitcoin, highlighting a large volume of paper bets. He emphasized the need for a wave of liquidations to achieve market equilibrium, marked by the “solid yellow chart,” a z-score oscillator that gauges local significance.
As of now, Bitcoin is trading at $64,500, having declined nearly 7.5% over the last week. Despite this dip, Woo’s analysis offers hope to investors, suggesting that patience and strategic observation of market indicators like the hash ribbons could lead to profitable outcomes in the near future.
As of writing, Bitcoin was trading at$64,500, having slid nearly 7.5% over the last week. Despite this dip, Woo’s analysis gives hope to investors, suggesting that patience and strategic observation of market indicators like the hash ribbons could lead to profitable outcomes in the near future.
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