Crypto Market Faces Bear Risk If Bitcoin Breaks $59K Support Level

Crypto analyst Willy Woo suggests that Bitcoin's fall below $59,000 could indicate the onset of a bear market, as it would break through short-term support. He analyzes market indicators such as cumulative volume delta (CVD) to assess the current market phase and predicts a "buy" period following a recent sell-off. Woo also points to the $71,000-$75,000 range as a potential catalyst for short liquidations.

Crypto Market Faces Bearish Risk if Bitcoin Falls Below $59,000

Renowned cryptocurrency analyst Willy Woo has issued a warning to the market, predicting that a bear market could be imminent if Bitcoin (BTC) falls below a crucial support level.

According to Woo, the current price of BTC at $58,900 represents a significant support level for short-term holders. A break below this level would signal a potential transition into a bearish phase for the market.

Woo's analysis utilizes the cumulative volume delta (CVD) metric, which measures market orders. He observes that the CVD sell-off has reached a peak, suggesting that a bullish phase is now underway. However, he cautions that the market has not experienced any structural changes since March and April remains a volatile month, with the upcoming Bitcoin halving event further exacerbating potential price swings.

Woo's technical analysis also identifies the $71,000 to $75,000 range as a critical level for potential short-position liquidations. He believes that the supply and demand dynamics of Bitcoin indicate an inevitable price surge beyond its all-time high, once the current consolidation period concludes.

Echoing Woo's sentiments, MN Trading founder Michael van de Poppe notes similar market dynamics for Bitcoin. He observes that the asset has stabilized within a range of $61,000 to $71,000, with recent price action indicating a potential upward trajectory in the coming week.

The volatility of Bitcoin was evident on April 13, when its price momentarily fell below $61,000 amidst geopolitical tensions in the Middle East. However, BTC subsequently rebounded to trade above $64,000 on April 14, with liquidations reaching a staggering $955 million on that day.

Woo's analysis and the market observations by van de Poppe underscore the sensitivity of the cryptocurrency market to both technical and fundamental factors. The potential for a bearish phase if BTC falls below $59,000 highlights the importance for investors to exercise caution and manage their risk exposure accordingly.