May 29, 2024

The expert predicted the start of a bear market for Bitcoin below $59,000.

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If the price of the first cryptocurrency drops below the short-term holders’ support level at $58,900, the market risks entering a bear phase. This was stated by analyst and co-founder of CMCC Crest Willy Woo.

According to him, the sale on the Cumulative Volume Delta (CVD), which measures market orders (impatient buys/sells), has peaked, so the “up” phase is coming next.

The expert noted that the market has not structurally changed since March, but April is “volatile in both directions.” The halving will be another catalyst for volatility.

“Current bearish sentiments are a good bullish sign,” added Woo.

The analyst also speculated that the next level at which significant short positions will be liquidated will be $71,000-75,000.

Considering the supply and demand charts of bitcoin, it is only a matter of time before “the accumulation happening in this consolidation pushes us beyond the historical high,” he believes.

Expert predicted the start of a bear market with bitcoin below $59,000Expert predicted the start of a bear market with bitcoin below $59,000
Bitcoin supply on exchanges. Data: Willy Woo.

“The longer digital gold consolidates around ATH, the more coins change hands from one investor to another, strengthening their price. This creates huge long-term support when we break through. The trillion-dollar class asset Bitcoin will not disappear,” emphasized the co-founder of CMCC Crest.

In the evening on Saturday, April 13, the quotes of the first cryptocurrency fell below the $61,000 level amid the escalation of the situation in the Middle East. The next day, digital gold recovered to levels above $64,000. In one day, the volume of liquidations reached $955 million.

Woo clarified that in almost every cycle before the halving, there was a bear phase due to the “over-accumulation” of the first cryptocurrency.

Founder of MN Trading Michael van de Poppe noted a similar dynamics of bitcoin. According to his observations, the asset consolidated at the lows of the current range of $61,000-71,000.

At the time of writing, digital gold is trading at $66,120, adding about 2.4% over the day.

Expert predicted the start of a bear market with bitcoin below $59,000Expert predicted the start of a bear market with bitcoin below $59,000
15-minute BTC/USDT chart on Binance exchange. Data: TradingView.

Earlier, van de Poppe suggested that the quotes of the first cryptocurrency started moving towards a high above $73,000.

Recall, former CEO of BitMEX Arthur Hayes predicted a possible decline in bitcoin ahead of the halving. The reduction in block rewards is a price catalyst in the medium term, and during the specified period, the coin will face liquidity outflows, the expert believes.

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