The popular on-chain analyst Willy Woo believes that Bitcoin has “very likely” broken through its low point.
Woo told his 1.1 million followers on the social media platform X that short-term technical indicators indicate a reversal in BTC price.
“We are 2 hours away from a TD9 reversal on the daily candle. If it happens, we enter a hidden bull divergence to correct the oversold conditions,” he said.
“BTC has not escaped its woes since then, we just need to see how much speculation has been flushed out of the system. Without clearing open interest on futures, the system can’t move upwards.”
The 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 the previous 13 bars or candles.
When the TD Sequential records nine candles above the close of the prior four candles, it prints a TD9 signal.
Woo also noted that $54,000 is the next level of liquidation for Bitcoin.
“To do this, it needs to dip far below the price of short-term holders, which will put BTC into a state of STH (the line between bull and bear markets), which is hard to achieve in the macro structure,” he said.
At the time of writing, BTC was trading at $60,885. The top-ranked crypto asset has dropped over 1% in the past 24 hours.
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