Cryptocurrency expert Willy Woo has some big predictions for Bitcoin’s future. He thinks Bitcoin could shoot up to somewhere between $71,000 and $75,000 soon. Why? Because of something called “short liquidations,” which basically means a lot of people selling off their Bitcoin quickly.
Right now, Bitcoin’s sitting on a support level at $58,900. If it drops below this, it might signal bad news—a bear market might be on the way. But Woo’s not all doom and gloom. He’s looking at a special metric called the Cumulative Volume Delta (CVD), which shows whether more people are buying or selling Bitcoin. According to Woo, this metric suggests that the selling pressure has peaked and we might be in for an upward swing soon. In a tweet, Woo said we could see a “recovery phase” coming up.
Woo also points out that Bitcoin’s upcoming halving event could shake things up. Halving events cut the reward for mining Bitcoin in half, and historically, they’ve made Bitcoin prices more volatile. March was pretty steady, but Woo thinks April might be a bumpy ride, so brace yourselves!
In the short term, Woo sees Bitcoin possibly hitting that $71,000 to $75,000 range due to those short liquidations. It’s a bullish outlook compared to the pessimistic vibe in the market right now.
Looking further ahead, Woo remains positive. He thinks Bitcoin will go through a phase where it consolidates around its all-time high, which could make its price stronger. Basically, as more people trade Bitcoin around its highest price ever, it helps solidify what that price really is.
But it’s not just about the money. Woo believes Bitcoin becoming a trillion-dollar asset class is a big deal. It means Bitcoin’s not going away anytime soon, which is a good thing for investors.
These ideas will be explored further at the Benzinga’s Future of Digital Assets conference. Industry experts will dive deep into what all this means for cryptocurrency investing, especially after the Bitcoin halving. They’ll talk about how to navigate the ups and downs of the market and whether we can expect to see Bitcoin reaching new record highs as the market grows up.
Bitcoin Shows Resilience Compared to Broader Crypto Market Despite Sell-Off
Bitcoin has showcased exceptional resilience when juxtaposed with the broader digital assets market, maintaining a dominance metric of 55.3%, marking its highest level since April 2021.
In a recent analysis, Matteo Greco, a research analyst at the digital asset investment firm Fineqia International, shed light on Bitcoin’s remarkable resurgence in market cap dominance. Despite recent market turbulence and heightened volatility, Bitcoin’s dominance has soared to its highest level in three years, underlining its enduring strength and significance.
Greco further highlighted the robust trading volumes witnessed in the Bitcoin market, despite the challenging market conditions. Notably, BTC Spot ETFs have recorded an impressive weekly trading volume of approximately $16.2 billion, with an average daily volume of approximately $3.2 billion. Since their inception, these ETFs have amassed a cumulative trading volume of around $212 billion, with an average daily volume of roughly $3.3 billion.
These staggering figures underscore Bitcoin’s unwavering appeal and enduring dominance within the cryptocurrency landscape. Despite the ebb and flow of market sentiments, Bitcoin continues to command substantial trading activity, reaffirming its status as the preeminent digital asset and the cornerstone of the crypto market.
Bitcoin Ends the Week in Red
Ending the week at approximately $65,650, Bitcoin (BTC) saw a decline of 5.3% compared to the previous week’s closing value of about $69,350.
The week was marked by significant volatility, notably over the weekend, following a period of relative stability from Monday to Thursday.
On Friday, BTC experienced a downturn, plummeting to a low of $65,100. This negative trajectory persisted into Saturday, reaching a weekly low of approximately $60,650 before rebounding and ultimately concluding the week around $65,650.
The weekend’s price decline was attributed to escalating geopolitical tensions in the Middle East. However, market sentiment improved following an announcement of a temporary ceasefire among the involved nations.
Additionally, investors’ focus turned to the upcoming halving event scheduled for the night between April 19th and 20th. Historically, previous halving events have been followed by 9-12 months of upward trends, though they have also triggered short-term “sell the news” reactions before and after the event.
The short-term bearish sentiment was further evident in the net outflow of $85 million from Bitcoin Spot ETFs during the week. Investors exhibited caution and engaged in profit-taking following the strong uptrend witnessed in Q4 2023 and Q1 2024. This cautious approach reflects a desire to hedge against potential market downturns and capitalize on recent gains.
US Inflation Data Surpasses Expectations
On the big picture of how the economy is doing, the recent news about inflation in the United States was even higher than what people were expecting. This caused a big change in what investors and experts think will happen with interest rates in 2024.
Originally, everyone was thinking that interest rates would drop by at least 75 basis points. That’s like saying they expected the rates to go down by 0.75%. This would happen in three steps, each one being 0.25% lower than the one before.
But now, with this new data showing inflation is higher than expected, people are changing their minds. They’re now thinking that interest rates might not drop as much as they first thought. Instead of a big drop, they’re expecting smaller drops, maybe between 0.25% to 0.5% throughout the year. They believe the first drop will happen around the third quarter of the year, and another one might follow towards the end of the year.
This person named Greco, who knows a lot about this stuff, says that if inflation keeps being higher than what the government wants, they might keep interest rates higher for longer. This could make it harder for certain investments to do well, especially those that are more risky. People might need to change what they invest in based on what they think will happen in the next few years, according to Greco.
Now, when it comes to digital money like Bitcoin, there’s been some interesting movement. Investment products related to digital assets saw a small decrease in the amount of money people were putting in. Specifically, there was $126 million less invested in these products just in the past week.
Bitcoin, which is the most well-known digital currency, had $110 million less invested in it. But don’t worry, it’s not all bad news for Bitcoin. Overall, for the whole month, there was still $555 million more put into Bitcoin than taken out.
On the other hand, products where people bet against Bitcoin, meaning they make money when Bitcoin’s price goes down, had been losing investors for three weeks in a row. But now, they got a little bit of new money, about $1.7 million. This might be because Bitcoin’s price hasn’t been doing so well lately, and some people are betting it will go down even more.
