Markets
Why Bitcoin Could Still Drop to $47K in This Market Correction
Bitcoin prices could fall to around $47,000 in this market correction, according to technical analyst Willy Woo.
This scenario would result in an overall decline of 36%, which is also not unprecedented. bull market cycles.
On July 8, Woo posted a market overview to his 1.1 million followers on X, concluding that markets had entered a macro consolidation phase but did not rule out further declines.
“It’s a deep consolidation designed to shit your pants and liquidate traders with maximum pain. $47K is still possible to kill more longs, but accumulation appears to have started.”
Bitcoin Accumulation Phase
He blamed the selling pressure of the German government and Mt. Gox bailouts for some of the declines, but added that there was more to it than those two factors.
He said Bitcoin miners were still in capitulation before adding: “Until the hash rate goes up, as seen in a tape recovery, the local environment is bearish. Miners are selling, which happens every time after a halving.”
The average hash rate is currently around 600 EH/s, down about 18% from its all-time peak in May.
On the subject of Bitcoin ETFsHe said there have been “surprisingly steady inflows. ETFs are buying the dip,” which is “suggestive of an accumulation pattern.”
On July 8, there were around $295 million in inflows into spot Bitcoin ETFs, their highest level since early June, according to for Farside investors.
However, he blamed speculative “futures casino” or “paper Bitcoin” traders for much of the recent carnage. “The heat map is where the fuel is placed, the price is the fire,” he said before adding:
“Price wants to hunt higher to take out shorts to $77K but there is also plenty of fuel lower, $47K is the next stop in the other direction.”
There is still a lot of speculation and “paper betting”, so it will be difficult for the price to rise in this situation.
These paper bets have been increasing, creating an extra 140,000 BTC in paper while the available spot supply has remained stable, he said before concluding: “Now compare that to the 10,000 BTC that Germany sold and you see what really caused the dump.”
BTC Price Outlook
Woo said the market was in a local bearish environment within a macro bull market, which is a “consolidation and a gift to the sat stackers.”
The asset has gained in the past 12 hours but remains flat on the day, trading around $57,483. However, it is down around 9% on the week and 17% in the past month.
The $58,000 level needs to be broken for BTC to break above resistance again.