Bitcoin Currently Forming a Bullish Chart Pattern, According to On-Chain Analyst Willy Woo – But There’s a Catch

Popular on-chain analyst Willy Woo is updating his outlook on Bitcoin ( BTC ), suggesting that the market is starting to look bullish.

Woo tells his 1.1 million followers on the social media platform X that Bitcoin may be forming a bull flag pattern, setting the stage for a breakout.

In technical analysis, a bull flag is viewed as a continuation pattern, indicating that an asset is consolidating and gearing up for a fresh rally.

He also says that supply available on crypto exchanges is declining, often a bullish sign. When supply shrinks on exchanges, demand could soon overwhelm supply, pushing up BTC’s price tag.

“Bitcoin signals:

• Short term: continuation of bullish swing, likely one week left in play.
• Medium term: we’re seeing lots of spot BTC being scooped up, exchange inventory accounting for derivatives remains flat, but this could change quickly if we get a short squeeze. Chart pattern is forming a bull flag.”

Source: Willy Woo/X

However, the analyst warns that current demand has yet to flip bullish.

“Current demand and supply is neutral bearish, but signs of moving into a bullish structure if we get some liquidations. Cautiously optimistic.”

The analyst also warns of a risk that all markets could suddenly plummet in the near term due to worsening macroeconomic conditions and then enter recovery rallies.

“Traditional finance risk: bond rates are dropping, can be a bad omen of staving off a potential crash, past examples 2020 COVID crash, 2008 [Global Financial Crisis]. In past cases this leads to a crash before a long term liquidity fueled (money printer goes brrrrr) rally in all asset classes.”

Bitcoin is trading for $59,495 at time of writing, down 2.5% in the last 24 hours.

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