Bitcoin’s on-chain strength is still decidedly in „bull mode“
Bitcoin has seen a strong rally in the past few weeks. The coin has rallied from the lows of $ 9,800 in early September to now $ 11,400.
Analysts say Bitcoin could bounce back in the near future as it faces increased selling pressure.
Despite these short-term bearish signs, the long-term trend remains bullish.
Well-known on-chain analyst Willy Woo believes that Bitcoin’s long-term trend is still decidedly positive despite short-term downside risks.
What’s next for Bitcoin?
Leading on-chain analyst Willy Woo predicts Bitcoin will fall towards the CME gap at the low $ 11,000 in the near future. The analyst comments that the cryptocurrency has a number of bearish factors that suggest it will crash towards these levels:
“This is short term technical analysis instead of my normal fundamentals; be warned that short term analysis is much less reliable, more likely for casino players. SUMMARY: I suspect that the last CME void (what is left of it in green) could be filled. “
First, Woo notes that the underlying market trends suggest that there is a „hidden spread“ of Bitcoin . At the same time, the BTC chart has started to resemble a textbook-like distribution pattern.
This coincidence suggests that Bitcoin will slide towards the CME gap at $ 11,200 in the near future. That would correspond to a decrease of 2-3% compared to the current prices.
Long-term trend remains positive
Despite these short-term factors that could compress the upward move in Bitcoin price, the long-term trend remains positive.
According to Woo, the fundamentals of the cryptocurrency in the chain are still in „bull mode“. He is confident that if BTC pulls back towards $ 10,000 it might be wise to invest capital in the coin:
“The on-chain fundamentals, which have a minimum time frame of 3 to 6 weeks, are in bull mode. If we get a withdrawal I would see it as an opportunity to put capital into BTC if you miss it in the 10k zone. “
It is noteworthy that the hash rate on Bitcoin’s network recently hit a new all-time high. This suggests that miners are more confident than ever that cryptocurrency will continue to rise – because that means they will be profitable.