Popular on-chain analyst Willy Woo thinks there’s a “good chance” Bitcoin (BTC) has already cleared its lows.
Woo tells his 1.1 million followers on the social media platform X that short-term technical indicators point to a BTC price reversal.
“2 hours away from a TD9 reversal on daily candles. If this plays out, then we go into a hidden bullish divergence to correct for the overselling of the market.
After that, BTC is not out of the woods, we just need to see how much speculation got cleared out of the system. Without purging futures open interest the system is not ready to move up.”
A TD9 reversal is related to the Tom DeMark (TD) Sequential Indicator, which traders use to predict potential trend reversals for tokens based on the closing prices of their 13 previous bars or candles.
When the TD Sequential records nine consecutive candles above the closure of the four prior candles, it prints a TD9 signal.
Woo also notes that $54,000 is the next layer of liquidations for Bitcoin.
“And to do that, it’s so far below short-term holders price that it would tip BTC into a bearish phase (STH price is a line in the sand between bull and bear regimes). This is hard to do within the macro structure.”
BTC is trading at $60,885 at time of writing. The top-ranked crypto asset by market cap is down more than 1% in the past 24 hours.
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