There’s no denying that the crypto market is taking heavy losses, but its rebound from the massive decline has made it easier for optimists to stay on track. Market cap, which is nearing 2.5 trillion, is down to 1.4 trillion at press time. While some argue that Bitcoin has peaked and the best course of action is to stop the loss and sell it, others persist in holding their positions.

Although last week was one of the worst months in the world, with market capitalization up 20% and Bitcoin price recovering significantly as well, its high volatility has brought everyone to the edge of their seats. After all, volatility is the deciding factor here.

BTC / USD | Source: TradingView

Despite all of the price movements, market corrections, and noise associated with the “soon to burst” bubble, on-chain analyst and trader Willy Woo sees the situation differently. in the Podcasts Recently host Peter McCormack pointed out that there was too much going on in the market. With China’s Bitcoin mining ban and El Salvador accepting Bitcoin as legal money, it’s like “two opposing forces at the same time”. To this Woo said:

“Even if it’s bullish, it’s great! The whole network is more decentralized, 60% of the miners will no longer live in China and China cannot control the network. Now the concerns that China will take over Bitcoin with a 51% attack are gone. Combined with El Salvador’s recognition of Bitcoin as legal money, it’s like Bitcoin battling a boss in a video game. BTC is developing against the central banks and that is happening much earlier than we thought. “

Regarding the corrective moves, a series of events resulted in a collapse in the price of Bitcoin. These include Elon Musk’s Bitcoin FUD, China’s mining raid, and recent news of a death cross looming over BTC’s price movement. In response, Woo pointed out interesting similarities between Tesla and Bitcoin. He says:

“There was a time when Tesla was the darling of Wall Street shorts and there were a lot of FUD attacks on Elon Musk and Tesla. I have the feeling that this is happening with Bitcoin right now. “

Looking at the price of BTC, the king of cryptocurrencies doesn’t seem to have completely lost hope. Recent attempts to climb above the $ 40,000 mark did not produce good results and fell after testing this resistance. However, the signs of a bullish rebound on the one-day chart cannot be ignored as the asset is up 11.8% in just 3 days. If the price of BTC breaks the USD 40,000 resistance, a marked rally and upward move can be expected.

Speaking of the recent sell-offs, Woo stated that the coin was previously “sold by hedge funds and corporations” and is now held by long-term owners and investors. The evidence is that the net growth rate of BTC companies remains high. In addition, there is a large influx of new users entering the Bitcoin network, which has usually not happened as often during previous bear markets.

According to Woo, the market is moving sideways, “falling, similar to a Wyckoff accumulation pattern.” $ 28,000- $ 29,000 is the final test of the current pattern and the analyst believes the market is recovering as on-chain analysis shows a bullish signal.

Minh Anh

According to AMBCrypto

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