Bitcoin Analyst Willy Woo: Crucial Moment Approaches as Bearish Momentum Fades

Renowned on-chain analyst Willy Woo believes that Bitcoin (BTC) is entering a critical phase, with indications pointing towards a potential bullish reversal. Woo, who has a substantial following of 1.1 million on the social media platform X, highlights key indicators that suggest a positive turn for Bitcoin.

Woo emphasizes that Bitcoin’s cumulative volume delta (CVD), an indicator used to identify divergences by comparing buying and selling volume over a specific period, is showing signs of becoming less bearish. He points out that the $59,600 mark has historically served as a crucial threshold between bullish and bearish trends, and Bitcoin needs to remain above this level.

Furthermore, Woo notes that the decline in Bitcoin held on crypto exchanges can be interpreted as a bullish signal. This trend indicates that more coins are being stored in cold wallets, making them less readily available for immediate sale.

Another positive indicator highlighted by Woo is the Bitcoin Risk Signal, which analyzes BTC’s network flows in relation to price movement and assesses the risk of a significant price decline. The risk signal has been decreasing, suggesting a reduction in risk.

However, Woo cautions that the weekly and monthly Bitcoin charts are still reflecting bearish momentum. The bearish divergence observed in the weekly candles is expected to continue onto the monthly candles when the month comes to a close. To break this divergence, Woo suggests that Bitcoin’s price needs a significant surge.

At the time of writing, Bitcoin is trading at $63,001, experiencing a 4.6% decline in the past week.

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