The analyst sees 3 Bullish and 2 Bearish Bitcoin price signals

Prominent crypto analyst Willie Woo has identified an ongoing power struggle (or tug-o-war in his words) between demand and supply in the Bitcoin ecosystem.

On Twitter, Wu listed three bullish and two bearish factors that could determine the direction of Bitcoin (BTC) price in the near term. He explained that bullish signs defeat the bearers; Therefore, BTC is likely to see a lot of northward movement in the coming months.

The three bullish macro signals

According to Wu, the mining is over, and the Bitcoin hash rate is recovering. The end of mining is considered one of the most reliable bullish signs. After miners launched the next generation of mining hardware, Bitcoin's price and hashrate have plummeted. As a result, Woo believes the hashrate is “set to scream.”

Highlighting an earlier tweet in which he predicted the market would rally due to the end of mining productivity, Woo said BTC could see months of “bullishness”. According to his claim, BTC rose above $60,000 a day after he made the post, a hash rate recovery before the rally.

The second labor factor is the pool multiple, which measures the relative profits of miners relative to previous earnings. Woo calls the measure a “1-2 punch macro signal.” The first part is a macro bottom that occurs when miners see less profit, and the second is a signal that occurs when a Bitcoin halving reduces mining rewards by 50% and leads to a bull run.

According to Wu's analysis, the market is on the second punch of the pool multiple, and the miners will make huge profits from now on. The analyst expects publicly listed mining stocks to pay off and insists now is a good time for investors to buy into mining.

Woo also stated that the global liquidity setup is the first sign that BTC will soon rise. This is due to traditional financial entities increasingly buying riskier assets such as BTC, which often occurs when liquidity expands.

On the hidden side

On the other hand, bullish signs include the accumulation of coins entering the space from entities such as the Matthew Gox Trustee and the potential impact on BTC of the space's launch of Ethereum exchange-traded funds (ETFs). America.

However, Woo thinks that BTC needs to break $73,000 in the short term to “light the fuse to squeeze it short” to $77,000 and maintain stable growth from there.