Bitcoin is about to cool down if the bulls do not intervene, says on-chain expert
The on-chain analyst Willy Woo signals a possible cooling of the Bitcoin trend and indicates that the asset could enter a longer consolidation phase if it does not get strength again soon.
In a recently published Update Woo found that Bitcoin approaches the weekly time frame of a Bärische Divergence-a constellation in which the prices rise, but momentum indicators like the RSI, which indicates an exhaustion of the rally. He indicated that the market could tend to sideways for a longer period of time, unless Bitcoin attracts until the beginning of next week.
Despite this short -term caution, Bitcoin's fundamental data remains solid according to Woo. In his opinion, declines are only a catch -up movement of the market after an unusually fast increase in the past few months. Using proprietary knowledge of his company Bitcoin Vector, Woo emphasized that the current resistance of technical nature was and is not based on the weakening of the network strength.
With a view to the future, Wood asked the dealers to detach themselves from the expectations of clear four -year halder cycles. He believes that Bitcoin's price movements are currently strongly influenced by global liquidity and macroeconomic changes and not just from internal shocks.
In his opinion, BTC has become a “macro asset”-an early indicator of changes in the global markets and no longer just a purely cyclical digital goods.
