$BTC Price Drops But Outlook Is Hopeful, Says Willy Woo

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KEY TAKEAWAYS

  • Trader Willy Woo suggests a potential Bitcoin upswing as the Cumulative Volume Delta (CVD) sell-off peaks, indicating a reversal in market trends.
  • Woo highlights the $58.9k short-term holder (STH) support level as crucial, noting a break below could signal a shift to a bear market.
  • Despite recent market liquidations, Woo anticipates potential price increases to between $71k and $75k due to short liquidations.
  • Echoing Woo, investor Tim Draper predicts Bitcoin could reach $250,000 by the end of 2024, driven by factors like new ETFs and the upcoming Bitcoin halving.
  • The approval of spot ETFs for Bitcoin and Ether in Hong Kong has significantly boosted both cryptocurrencies, enhancing Hong Kong's role as a major hub for digital asset firms.

Popular trader Willy Woo has offered a cautiously optimistic outlook for Bitcoin (BTC), suggesting a potential upswing following a significant peak in the Cumulative Volume Delta (CVD) selloff.

In a recent post on X, Woo said CVD, a key market indicator that tracks impatient buy and sell orders, has shown signs of maxing out, interpreting it as a precursor to a market rise.

Woo highlighted the $58.9k short-term holder (STH) support level as a critical juncture. “If this breaks, we move to a bear market,” he stated.

However, he also noted that the market has likely seen the worst of its liquidations, with the possibility of short liquidations driving prices up to between $71k and $75k next.

His analysis also pointed to a continuation of bearish sentiment as a potentially bullish indicator. “We flushed out long leverage down to $60k. To liquidate lower, the price would have broken the formidable $59k STH support,” Woo explained.

In the broader scope, Woo remains cautious, suggesting that a true bullish market environment is still weeks away.

His assessment is that the market will remain “choppy in both directions” in April. He also hinted at the impact of the upcoming Bitcoin halving event this week, a well-known catalyst for market volatility.

Investor Tim Draper Expects an Uptick in Bitcoin Price

Echoing Woo’s sentiment, venture capitalist Tim Draper also forecasts a significant uptick in Bitcoin’s value, which he believes could reach $250,000 by the end of 2024.

Speaking during Paris Blockchain Week last week, Draper cited several factors fueling his optimistic projection, including the introduction of spot exchange-traded funds (ETFs) and the fourth Bitcoin halving scheduled for April 20.

Draper emphasized Bitcoin’s role as a safeguard against fiat currency devaluation, an increasingly attractive proposition as the cryptocurrency becomes more commonly used for transactions.

He underscored Bitcoin’s security against inflation and economic instability. “I don’t really need to hold on to any fiat currency that decreases in value over time because of political whims or government spending,” he said.

Furthermore, Draper advised that investing a small, single-digit percentage of one’s portfolio in Bitcoin could serve as a hedge against potential bank failures and the decline of sovereign currencies, thereby enhancing financial stability for investors amidst global economic uncertainty.

Bitcoin Surges as Hong Kong Approves Spot ETFs

Bitcoin and Ethereum witnessed a significant surge following Hong Kong’s initial approval for the launch of spot ETFs for these cryptocurrencies.

The development, heralded by major asset managers, including Harvest Global Investments and a collaborative effort from HashKey Capital Ltd. and Bosera Asset Management (International) Co., substantially lifted the crypto market overall.

On Monday, the firms announced the move in separate statements. The Hong Kong division of China Asset Management also confirmed it had secured approval from the city’s Securities & Futures Commission to manage virtual assets and was actively developing related products.

OSL Digital Securities further indicated its role in the emerging market dynamic, stating it would provide custodial services for Bitcoin and Ether products managed by China Asset Management and Harvest. The move is part of a broader effort by Hong Kong to position itself as a leading hub for digital asset firms, rivaling established centers like Singapore and Dubai.

The endorsement by Hong Kong authorities spurred market optimism, driving Bitcoin up by as much as 4.3% to a price of approximately $66,629, while Ether increased by 6.1% to reach $3,257.

The Bottom Line

Crypto veterans Willy Woo and Tim Draper have outlined a cautiously optimistic outlook for Bitcoin and the broader crypto market. Woo’s analysis suggests an imminent upswing following the CVD sell-off while Draper’s bullish prediction is driven by factors like the introduction of spot ETFs and Bitcoin’s inherent protections against fiat devaluation.

Additionally, the approval of spot ETFs in Hong Kong has further boosted market prices. The news led to Bitcoin surging up by as much as 4.3% to a price of approximately $66,629 and ETH increasing by 6.1% to reach $3,257.

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