After a new all-time high of $ 66,900, bitcoin crumbled down 8.5% in just three days. This resistance is above $ 60,000, and it is lower than Woo estimated.
According to analyst Willy Woo, there are expectations of the launch of the bitcoin ETFs, which went in parallel with the fear of being left out to lead a rebound in its price; although the cryptocurrency could be an overvalued asset.
This boom, which started to accentuate at the end of last week, was vital to see the establishment of a new all-time high on Wednesday, October 20.
Woo highlights in his analysis that, since last October 16, when the price of bitcoin surpassed $ 60,000, the market was going through a period of intense purchases for the possibility of approval of a bitcoin ETF.
The analyst had stated that the price was likely to rally past its previous all-time high of $ 64,900. Indeed, this milestone got achieved last Wednesday, a day after the successful launch of the first bitcoin ETF in the United States, facts reported by CriptoNoticias.
In the analyst’s opinion, bitcoin showed signs of being overvalued due to the strong purchase impulse and warned that if it surpassed the historical mark, a price decline would happen, as indeed it did.
The touchdown of the milestone happened because of the boost provided by the first bitcoin exchange-traded fund (ETF) in the United States of America, something that had already been under expectations since the end of last week.
Regarding its behavior on the stock market, the bitcoin ETF got close to a break of the trading record in just one day. Something that any instrument of this type had done before.
Although this new boost for the price of bitcoin happens due to the arrival of the ETF on Wall Street, the truth is that various analysts have been warning of an accumulation phase that gave rise to thoughts about a significant bullish scenario for weeks.
In that sense, Willy Woo had already assured that October would be a vital month for the bitcoin price, with the collecting of investors at maximum levels. This behavior, along with various indicators, brought the analyst the opportunity to foresee an upward movement.
Woo shows that, as a result of the supply shock and the supply and demand dynamics of bitcoin, the metric called “the Supply Shock Oscillator” entered the zone as an oversold item.
According to the analysis, the most relevant parameters of the network aim at a price around USD 50,000. The price crumbled down for two days in a row, after the all-time high of $ 66,900, to recover and fluctuate around $ 61,000.
Willy Woo also estimated the level of support after the all-time high at $ 64,000. However, the subsequent intense sales affected the decline, making it close to USD 6,000 in two days, Thursday 21 and Friday 22, while this Saturday, the price has managed to stay slightly above USD 61,000.
By: Jenson Nuñez
