Renowned on-chain analyst Willy Woo has shared significant insights regarding the recent price movements of Bitcoin. He believes that the rapid decline of Bitcoin at the beginning of the bear market has actually created conditions for a mid-term rebound. In a post on the social media platform X, Woo pointed out that Bitcoin faced temporary resistance around the $75,000 mark, but since mid-February, there have been signs of a mild recovery in market liquidity.
Additionally, he cited data from the CBOE Volatility Index (VIX), indicating that the risk appetite among traditional stock market investors may be quietly rebounding. This trend could indirectly boost sentiment in the crypto market, providing support for Bitcoin's price.
Woo specifically mentioned that the current market is brewing an attempt to rebound towards the $85,000 region, which roughly corresponds to the average cost basis of short-term investors. However, it is important to note that this does not mean the market has bottomed out. According to long-term liquidity indicators, Bitcoin is still in the mid-stage of the bear market. Historical data shows that after similar rapid declines, the market typically undergoes several weeks to months of consolidation, repeatedly testing key resistance levels before potentially initiating a new upward trend.
Therefore, despite the short-term technical indicators showing signs of recovery, investors should remain cautious and pay attention to the subsequent changes in trading volume and on-chain data.