Popular on-chain analyst Willy Woo is contemplating Bitcoin’s path ahead, as the flagship cryptocurrency struggles to surmount the $40,000 level.
In an interview on the What Bitcoin Did podcast, Woo expresses confidence that Bitcoin has not entered a bear market quite yet, despite the asset’s plunge down from around $43,000 to just above $30,000 in the span of a day.
Woo even goes as far as to say that the harsh correction could be healthy for the market.
“This is not a mania phase and then the start of the bear market. This is just the middle of the bull market… So we’ve got a lot of cheap coins sitting here on the market. I think it will take a bit of time to recover just from the sheer amount of coins that we dumped out. It will take time to reaccumulate. I think ultimately, if you look at the network health, this is a good thing.”
Woo does acknowledge that the dip may affect his price target for the current bull market, but it is too soon to tell how resilient Bitcoin will be amid the sell-off.
“Well, the model I use for the market top is based on the price trajectory, and it’s slowed the rise to the top for that model.
Yeah, it’s too early to tell. It’s predicated on what happens in the next quarters of the bull market but it’s going above $100,000, I’m confident. We’d need to go up very quickly for us to reach $300,000. Right now, I’m ballparking between $200,000-$400,000. I need to see how this price gets absorbed. I want to see what happens in the weeks to come, but it’s definitely slow.”
The data analyst does spotlight some bullish Bitcoin movement off exchanges, noting this could mean that Bitcoin is in recovery mode.
“It’s really too early for me to get a picture of how this is recovering. It is recovering. We saw immense peaks and flows out of the exchanges as we were going below the $40,000 range, so very bullish on the exchange flows.”
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