Bitcoin has suffered a slight setback since the high of $16,500 set a few days ago.
The leading crypto currency has fallen to $16,000 by the time of writing, and even to $15,700 on Saturday morning.
Nevertheless, top analyst Willy Woo says that fundamentals in the trading chain remain bullish.
Bitcoin remains bullish: Willy Woo
Bitcoin has suffered a slight setback since the high of $16,500 set a few days ago. The leading crypto currency has fallen to $16,000 by the time of writing, and to $15,700 on Saturday morning.
Analysts fear that this drop is the beginning of a stronger downward movement. That the crypto currency is flirting with the $16,000 support is certainly a worrying sign.
But according to Willy Woo, a prominent on-chain analyst, there is no great cause for concern.
While he admits that Bitcoin’s short-term technical data is in a bearish state, with a bearish deviation of the relative strength index to four hours and a Tom Demark Sequential 9″ on the eight-hour chart, he says the data is still in a bearish state. However, he adds that what really matters – the on-chain fundamentals – remain bullish.
Woo highlights two on-chain trends in particular: 1) the increase in the number of Bitcoins sent from exchanges to customers‘ wallets and 2) the increase in the number of new and active users of the Bitcoin network:
“ Setup of weekend trading: shaking off some technical bearish speculation (4h RSI div, 8h TD9). The short and medium term on-chain fundamentals are bullish, more coins have been taken out of the exchanges, more users are arriving. Buy-the-dip scenario.“
Other bulls think so too
Woo is not the only bull who believes Bitcoin will continue its rise in the coming days. One trader comments on BTC’s price action, arguing that there could be a move to $17,000 or $18,000 in the near future:
„I think there is a reasonable chance that Bitcoin will break through $17,000 and even $18,000 in the next 10 days (next weekly candle). In the middle of the time window a decent blow-off is due and we should relax a little and the wick into the ATH cluster just feels right… The way to a wick of $18,000 or ATH seems to be the way of least resistance. Nobody wants to sell until then, and everybody is buying dips. The easiest way to create a market balance is to do it quickly and then let the market spin a little.“