Analyst Willie Wu believes that Bitcoin (Bitcoin) needs to convincingly turn one key level into support to confirm the beginning of the upward phase.
Woo He tells His 1.2 million followers on
The cost basis model is an on-chain metric that estimates the average price at which short-term holders of Bitcoin received their coins. The scale can be used to identify potential entry and exit points.
The analyst also warns that Bitcoin must remain above the $60,000 level or there could be a sharper correction.
“The next test for BTC is to break the cost basis for new investors ($79,000). I give 30% odds of doing so on this attempt. After that, if BTC can maintain this price level above $65,000 and not break out, the chances of hitting a structural bottom increase dramatically. BTC is currently trying to reach a bottom, but all the pieces are not in place yet, and the next three to six weeks will be clear.”
Woo He adds If Bitcoin flips the $79,000 level to support, it would signal the end of the ongoing bearish phase based on historical precedence.
“Three things happen at the end of bear markets.
- The price clearly breaks the cost basis for new investors (circles).
- Passive Hobium smoking gives way to frenzied clicking of the buy button to chase the price.
- This raises the cost basis (red line moving to green).”
Bitcoin is trading for $76,237 at the time of writing, down 1.3% on the day.
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