Bitcoin’s impressive rally could be facing a crucial inflection point, as leading on-chain analyst Willy Woo points to signals suggesting a potential shift towards a more protracted period of market consolidation. This outlook comes amidst observations of technical indicators that warrant caution, even as the asset’s foundational strength remains undiminished.
Navigating Potential Market Plateaus
In his recent market assessments, Willy Woo highlighted a developing bearish divergence on Bitcoin’s weekly chart. This pattern typically emerges when an asset’s price continues to rise, but its momentum indicators, such as the Relative Strength Index (RSI), begin to show weakening trends. This divergence often foreshadows an exhaustion of upward momentum. According to Woo, if Bitcoin fails to regain its upward trajectory by early next week, the market might enter a prolonged phase of sideways movement, rather than continuing its rapid ascent.
However, despite these near-term technical warnings, Woo emphasizes that Bitcoin’s fundamental underpinnings are robust. He interprets any current retracements as the market simply recalibrating after an exceptionally swift price surge in previous months. His firm’s research indicates that the existing resistance is primarily technical in nature, signifying market fatigue or profit-taking rather than any inherent weakening of the Bitcoin network itself.
Beyond Cyclical Halving Events
Looking ahead, Woo advises investors to broaden their perspective beyond the traditional four-year halving cycles that have historically dictated Bitcoin’s price movements. He asserts that contemporary Bitcoin price dynamics are increasingly influenced by global liquidity and wider macroeconomic shifts, rather than solely by the internal supply shock created by halving events.
In Woo’s view, Bitcoin has evolved into a “macro asset” – an influential signal that can often precede broader changes across global financial markets. This positions BTC not merely as a cyclical digital commodity but as a significant indicator reflecting worldwide economic conditions.
Senior Crypto Correspondent with over 8 years of experience covering Bitcoin, altcoins, and blockchain technology for leading financial publications. Alexander holds a master’s degree in Financial Economics and specializes in in-depth market analysis, regulatory updates, and interviews with top industry figures.