Bitcoin Price Lows May Be Over, According to Willy Woo

Popular on-chain analyst Willy Woo believes there’s a “good chance” Bitcoin (BTC) has already cleared its lows. Woo, sharing his insights with his 1.1 million followers on the social media platform X, points to short-term technical indicators signaling a BTC price reversal.

Woo highlights the significance of the TD9 reversal on daily candles. “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,” Woo explains.

A TD9 reversal is based on the Tom DeMark (TD) Sequential Indicator. Traders use this to predict potential trend reversals, relying on the closing prices of the previous 13 bars or candles. When the TD Sequential shows nine consecutive candles above the closure of the four prior candles, it prints a TD9 signal.

Despite the potential reversal, Woo advises caution. “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.”

Woo also mentions the critical liquidation point for Bitcoin at $54,000. “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.”

As Woo continues to analyze market movements, his insights provide valuable guidance for traders navigating Bitcoin’s volatile landscape.