The Bitcoin (BTC) market exists at high voltage moments. While investors sail between euphoria and uncertainty, analyst Willie Wu explains a speculative scenario.
In the context of record prices and inconsistent signs, actions in the US market after the commemorative holiday could be key to understanding where Bitcoin is being directed.
The coexistence of bullishness and bassists defines the current panorama. According to X’s Woo, This duality promotes considerable volatility with a sudden movement in the price of Bitcoin.
The SOPR indicator (Spont Output profit ratio) that measures whether an investor is selling BTC with profit or loss reflects a strong profit moment for those who have decided to settle the position.
This, Wu says, will feed “speculation about Bitcoin being crazy” as investors are trying to capitalize on the recent rise.
The following graph shows the evolution of Bitcoin prices along with the SOPR and speculation model. The peak of the speculative model (magenta line) reflects the extreme levels of speculation today, while the SOPR (purple line) confirms that investors are making significant profits.
on the other hand, Analysts warn that the situation remembers Adagio de Warren Buffett: “Fear when others are greedy.” This suggests that market overoptimism can be a warning signal, as general euphoria usually precedes a serious revision.
The truth is that a combination of high profits and excessive enthusiasm puts the market in a vulnerable position.
The impact of holidays on the US
In honor of fallen soldiers on the anniversary holiday held yesterday, May 26th A pause has been marked in the US market.
Over the past three days, the capital flow to the Bitcoin network has shown unusual stability, A notable absence of new purchases in price range from $75,000 to $112,000 or more.
Capital flows are stable, but in the short term, the lack of new maximums could potentially give way to bearish divergence. The “Structural Shift: Bearish” chart is a chart with a timeline from April 26th to May 26th, with the blue line on the graph falling to red at the end indicating a change in trend. There is a progress bar showing structure changes to the “bearish” side (bassist)..
Wu interprets this calmness as a critical prelude. Investor decisions this week, market reopening, They can determine whether Bitcoin is maintaining that impulse or, of course, facing change.
Signals of possible turns
Despite the general bullish panorama, Wu has identified the first indication of bearish pivots in the market structure.
This means that Prices may not maintain ascending trendsespecially when capital tickets continue to weaken. In this scenario, Woo expects the market will need to “drain another wave of profits.” This is the process by which investors sell to secure profits and can press downward prices.
But analysts never lose sight of the positive horizon. “The general panorama is bullish and the risk signal is reduced,” he says.
If purchases are revitalized this week, Woo predicts that Bitcoin could reach $114,000. This liquidation creates additional upward pressure and further increases the value of the currency..
Next, you will see a graph showing forecasts of future movements until the beginning of June. The blue and cyan bars on the right are “liquidity areas,” that is, price levels where there are many purchase orders that can affect price movements. Discontinuous lines starting from “now” (now) They show the least likely route for Bitcoin prices to continue in the coming daysshowing key levels such as $114,000, and WOO analysts believe that revitalized purchases are important.
Bitcoin as digital gold
Beyond immediate volatility, HashDex’s investment companies highlight structural changes in the market, as reported by encryption.
Bitcoin positions itself as “digital gold.” Separate from pure speculation and integrate it as a pillar of the global economy. This process, according to the company, corresponds to the convergence between market behavior, regulatory advancements and real-time increases.
This transition suggests that digital currency is entering a new stage of maturation that is less dependent on speculative movements.
However, Wu’s analysis reveals that speculation is a dominant factor in the short term. The peak of the speculation model indicates that the market is still far from achieving the stability HashDex projectsand the risk of bearish pivots could delay this transition. Nevertheless, as Woo points out, institutional participation could be the bridge that links this instability to the most stable future that gives us a glimpse of Hashdex.
The role of the institution
last week, Bitcoin has reached historic maximum of $111,000although I’m currently quoting about $109,000. Wu attributed this impulse to the activities of institutional investors that led “incredibly fluid” capital to Bitcoin.
“I’ve never seen such a constant movement, as if an agency is averaging costs in billions of dollars,” the analyst said. This strategy is known as Averaging the dollar (average cost of dollars or DCA) means investing regularly on a fixed amount, regardless of the price suggests a long-term vision.
These institutional movements strengthen Bitcoin’s price support base. Woo also predicts that if the trend is maintained, Bitcoin will reach $118,000 in the short term, backed by the supply pressure generated by bulk purchases.