Cryptocurrency analyst Willy Woo is making predictions about the future of Bitcoin (BTC). Therefore, he believes that a correction towards the US$39,000 mark is possible before an eventual upward movement.
Woo, who has a follower base of one million on the media platform social X, pointed to a gap in the Chicago Mercantile Exchange (CME) futures market as an indicator. The gap is situated around $39,700 and is a common feature in traditional financial markets. Therefore, where an asset opens at a much higher price than its last closing price, usually during the weekend. Typically, a lack of liquidity in this price range leads to an expectation that the gaps will integrate at some point.
The BULL case for #Bitcoin
– Rates dropping
– Global liquidity returning
– DXY peaking
– Spot ETF imminent
– Impressive public company treasury demand for BTC indicated by $MSTR buying appetite
– paper BTC on the decline
– @PeterSchiff noting Gold at ATH but not BTC
— Willy Woo (@woonomic) December 8, 2023
Woo bases his prediction on a gap in the Chicago Mercantile Exchange (CME) futures market
Woo also highlighted another gap nearby, this time near $20,000. He notes that of the 30 CME price gaps, 28 have already been filled on daily candles, representing an impressive 93%. The only unfilled gap is recorded on the graph.
The cryptocurrency analyst also outlined optimistic and pessimistic scenarios for Bitcoin. In his list of bullish factors, Woo includes the prospect of lower interest rates, the spike in the dollar index (DXY), the return of global liquidity, the imminence of a Bitcoin exchange-traded fund (ETF). And, therefore, also the growing demand from public companies for Bitcoin (as indicated by MicroStrategy), and the decreasing role of BTC.
Woo also highlights factors that could boost Bitcoin, such as lower interest rates and the return of global liquidity
However, he also pointed to bearish factors such as the net inflow of coins into exchanges, bearish technical setups, decreasing demand for Bitcoin in futures markets, and long liquidations in dispute.
At the time of writing, Bitcoin was trading at $42,215.
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.