Veteran on-chain analyst Willy Woo says that Bitcoin (BTC) is on the edge of moving into a lengthy correction phase.
Woo tells his 1.2 million followers on the social media platform X that BTC has until Monday to avoid printing a bearish divergence on the weekly chart.
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A bearish divergence happens when price makes higher highs, while an indicator like the relative strength index (RSI) makes lower highs, suggesting that an asset is losing bullish momentum.
Says Woo,
“Dear Mr Bitcoin, you have [until Monday] to rally or you’re gonna print a bearish divergence on weekly charts and then we will be bored for weeks and weeks.”
Using proprietary data from his Bitcoin analysis firm, the Bitcoin Vector, Woo says that BTC appears to be strong, but may be “equalizing” itself after rallying faster than usual in previous months.
“Our Bitcoin Vector framework remains strong despite the pullback.
What’s happening is technical resistance in the form of a bearish divergence playing out against strong fundamentals. Basically, BTC ran up faster than normal and is equalizing.”
While many traders are still betting on the traditional halving-based four-year cycles, Woo says BTC is becoming more linked to external macro forces, and that predictable, cyclical price patterns are now a thing of the past.
“BTC is global macro this cycle. Which means don’t necessarily bet on nicely manicured four-year cycles. BTC is transitioning.
Internal forces, the halvening, are getting weak, global liquidity powers BTC – hence BTC is becoming the canary in the coal mine for global macro moves.”
At time of writing, Bitcoin is trading at $104,737
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The post Bitcoin May Go Into Imminent Correction Mode for ‘Weeks and Weeks,’ According to Analyst Willy Woo – Here’s Why appeared first on The Daily Hodl.
Original Author: Alex Richardson
Disclaimer: The views expressed in this article are those of the author and do not constitute investment advice. Please conduct your own due diligence before making any high-risk investments, including cryptocurrency. All investment and trading decisions are at your own risk. ChainSoldier.com does not recommend buying or selling any specific cryptocurrency or digital asset, nor does it offer investment advisory services. We may participate in affiliate marketing programs and receive commissions.
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