Analyst Willy Woo believes Bitcoin (BTC) needs to convincingly flip one key level into support to confirm the start of a bullish phase.
Woo tells his 1.2 million followers on X that Bitcoin may go parabolic if the top crypto asset can break through the next major resistance level at $79,000, the cost basis of recent investors.
The cost basis model is an on-chain metric that estimates the average price at which short-term Bitcoin holders acquired their coins. The metric can be used to spot potential entry and exit points.
The analyst also warns that Bitcoin needs to remain above the mid-$60,000 level or there may be a more severe correction.
“The next test for BTC is cleanly breaking the cost basis of recent investors ($79,000). I give it 30% odds on doing this on this attempt. After that, if BTC manages to hold this price level above $65,000 and not break down, then the chances of a structural bottom increases significantly. BTC is currently attempting a bottom, but all the pieces are not yet in place, the next three-six weeks will be telling.”
Woo adds that if Bitcoin flips the $79,000 level into support it signal the end of the ongoing bearish phase based on historic precedence.
“Three things happen at the end of bear markets.
Price cleanly breaks the cost basis of recent investors (circles).
Idle smoking of hopium gives way to rabid clicking of the BUY button chasing the price.
This raises the cost basis (red line transitions to green).”
Source: Willy Woo/X
Bitcoin is trading for $76,237 at time of writing, down 1.3% on the day.
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