Bitcoin, the leading cryptocurrency, has experienced declines in recent days due to sales by the German and US governments and miners.
In the downward wave that started last week when the German government moved a large amount of BTC to exchanges such as Coinbase and Kraken, it fell below $ 59,000, but the price recovered from there to over $ 61,000.
While investors expect the recovery to continue, famous cryptocurrency analyst Willy Woo said that the current rise may be temporary and the bears are still in control of the price.
Stating that although the last Bitcoin price correction eliminated excessive leverage in the market, there are still a lot of leveraged transactions in the market, Willy Woo said that a temporary recovery is mandatory before Bitcoin falls further.
Woo stated that the reversal in Bitcoin price is only technical and not fundamental, emphasizing that a break in the RSI trend line will bring a technical recovery/rise.
“It's good to see over-leverage clearing up in the last few days, but there's still a lot of speculative trading.
It is still under the control of the bears, but Bitcoin has been so oversold in liquidations that it is really difficult to go further down without going up.
Markets will correct for oversold; However, this does not mean that Bitcoin is guaranteed to experience further rises.
“For the rise to be fundamental and not technical, we need demand to exceed supply (for this to happen, spot buyers need to actively buy BTC from exchanges).”
Finally, Woo added that investors may see a few more weeks of dull BTC price action.
Nice to see some of the speculation getting purged the last few days.
Still a bit heavy, still too much speculation.
Bears still in control, but #Bitcoin got so oversold in the liquidations that it's really hard to go lower without an uptick. pic.twitter.com/EJeqmaLe0Z
— Willy Woo (@woonomic) June 26, 2024
*This is not investment advice.
