Willy Woo’s analysis highlights bullish and bearish factors influencing Bitcoin’s price movements.
Increased BTC on exchanges and the upcoming ETH ETF could pressure Bitcoin’s price.
Favorable global liquidity and miner profitability boost Bitcoin’s bullish outlook.
Understanding the factors that influence BTC’s price movement is the first step toward successful trading or investment. Willy Woo’s recent X post – below, provides a detailed analysis of Bitcoin’s current macro signals, both bullish and bearish.
Here's the 5 macro signals I'm looking closely at right now for #Bitcoin.3 bullish, 2 bearish…
— Willy Woo (@woonomic) July 23, 2024
Bullish Signals
Willy Woo begins by highlighting that miners’ capitulation has ended, a historically reliable bullish indicator for Bitcoin. This recovery is further supported by the hash rate increase. Woo explains that such hash rate recoveries often precede price increases.
Further reinforcing the bullish outlook is the Puell Multiple, an indicator measuring miners’ relative profitability. Woo points out that macro bottoms in Bitcoin typically occur when profitability is at its lowest.
Moreover, the halving event, which reduces miner earnings by 50%, usually leads to a significant bull run. He notes that miners are now becoming more profitable, making it an opportune time to invest in mining stocks.
Additionally, the broader setup in global liquidity is favorable for Bitcoin. Traditional finance tends to buy risk-on assets like Bitcoin when liquidity expands.
Bearish Signals
On the bearish side, Woo mentions the increase in coins entering spot exchanges, which could exert selling pressure. Specifically, 50,000 BTC from Mt. Gox has been sent to Kraken, a move that appears to be prompting other holders to send their coins to exchanges as well.
Another potential bearish factor is the imminent launch of the ETH spot ETF. This could result in some capital currently in BTC ETFs rotating into the new ETH ETF.
Woo acknowledges a tug-of-war between demand and supply factors but believes that the bullish signals currently outweigh the bearish ones. He suggests that the end of miners’ capitulation, improving miner profitability, and the positive global liquidity setup are strong indicators of a potential bullish trend for Bitcoin soon.
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The post From Miner Capitulation to Global Liquidity: 5 Signals Shaping Bitcoin’s Trajectory appeared first on Crypto News Land.
