A well-known expert thinks that Bitcoin’s upward trend will last for a short time. X reported that well-known cryptocurrency analyst Willy Woo said the current upward trend for Bitcoin could last for another week.
Woo talks about both the short- and medium-term possibilities for Bitcoin in his analysis. He thinks the bullish trend will continue in the short term, but the outlook for the medium term is more complicated, mostly because of changes in the amount of Bitcoin available on centralized markets.
Bitcoin Paper Contracts Impact
Woo shared a chart that shows the Spot BTC exchange supply has been going down recently. This means that buyers are moving their holdings to self-custodial wallets. People usually see this drop in Spot BTC inventory as a sign that prices are going up because it means there are fewer coins for sale.
What Woo does say, though, is that Paper BTC is becoming more important. These are BTC -linked derivative contracts that don’t require real token ownership. The chart shows that the total BTC exchange inventory, which includes Paper BTC, has stayed the same while the amount of Spot BTC has gone down.
This means that the release of Paper BTC is making up for the drop in Spot BTC. If the price of Paper BTC goes up, it could slow down BTC upward trend. Woo also says that a “short squeeze,” in which a lot of short contracts are closed, could change the way the market works in BTC favor.
Bitcoin rose above $61,000 yesterday, but it has since dropped to around $59,600.
