The analyst sees 3 bullish and 2 bearish Bitcoin price signals

Popular crypto analyst Willy Woo has identified a power struggle (or tug-of-war, as he puts it) between supply and demand in the Bitcoin ecosystem.

In a tweet, Woo outlined three bullish factors and two bearish factors that could decide the price trajectory of bitcoin (BTC) in the near term. He opined that bullish signals outweigh bearish ones; therefore, BTC is likely to see more northward movement in the coming months.

The three bullish macro signals

According to Woo, the capitulation of miners is over and Bitcoin’s hash rate is recovering. The end of miners’ capitulation is considered one of the most reliable bullish signals. Bitcoin’s price and hash rate bottomed out at the same time miners released next-generation mining hardware. As a result, Woo believes the hash rate is “set to scream.”

Highlighting an earlier tweet in which he predicted the market would rally due to the end of miners’ capitulation, Woo said BTC could see “bullish” months. True to its claim, BTC surged above the $60,000 level a day after the post was made, with a recovery in the hash rate before the rally.

The second bullish factor is the Puell multiple, which measures the relative profit of miners against past earnings. Woo called the metric a “1-2 punch macro signal.” The first part implies that macro funds occur when miners make minimal profits, while the second is a signal fund that occurs when Bitcoin’s halving miners’ rewards by 50%, resulting in a bull run

According to Woo’s analysis, the market is in the second stroke of the Puell Multiple, and miners will reap substantial profits going forward. The analyst expects publicly traded mining stocks to take off and insists now is a good time for investors to get into mining.

Furthermore, Woo explained that the global liquidity setup was an early sign that BTC would break out soon. This is also evident in traditional financial institutions buying more and more risky assets like BTC, which often happens when liquidity expands.

On the bearish side

On the other hand, bearish signals include a build-up of coins entering spot crypto exchanges from entities such as the fiduciary of Mt. Gox and the potential bearish impact on BTC due to the launch of Ethereum spot exchange-traded funds (ETFs) in the United States.

However, Woo believes that BTC needs to break $73,000 in the near term to “light the short-term fuse” at $77,000 and maintain a steady uptrend from there.

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