Bitcoin (BTC) Price Could Drop to Around $47K in This Market Correction, By Technical Analyst Willy Woo

Bitcoin (BTC) accumulation phase has started but the asset is still in a local bear market inside a macro bull market

Technical analyst Willy Woo says that Bitcoin (BTC) price could potentially drop to around $47,000 in this market correction.

That scenario would lead to an overall retrace of 36%, which is also not unprecedented in bull market cycles.

On July 8, Woo posted a market overview to his 1.1 million followers on X, concluding that markets had entered a macro consolidation phase but had not ruled out further drops.

“It’s a deep consolidation designed to shit your pants and to liquidate traders into max pain. $47k still possible to kill more longs, but accumulation appears to have started.”

Bitcoin Accumulation Phase

He attributed selling pressure from the German government and Mt. Gox redemptions to some of the declines but added that there was more to it than these two factors.

He noted that Bitcoin miners are still in capitulation before adding, “Until the hash rate climbs, as seen in a ribbon recovery, the local environment is bearish. Miners are selling off, which happens every time after the halving.”

The average hash rate is currently around 600 EH/s, down about 18% from its May all-time high.

When it comes to Bitcoin ETFs, he said there were “Surprisingly it’s net inflows. ETFs are buying the dip,” which is “indicative of an accumulation pattern.”

July 8 saw about $295 million in spot Bitcoin ETF inflows, its highest level since early June, according to Farside Investors.

However, he attributed a lot of the recent carnage to the “futures casino” or speculative “paper Bitcoin” traders. “The heatmap is where fuel is laid, the price is the fire,” he said before adding,

“Price needs to seek higher to take out the shorts all the way to $77k, but also there’s a lot of fuel lower, $47k is the next stop in the other direction.”

There is still too much speculation and “paper bets,” so it will be difficult for the price to climb in this scenario.

These paper bets have been increasing, creating 140,000 additional paper BTC while available spot supply has remained flat, he said before concluding,

“Now compare that to 10,000 BTC that Germany sold and you see what really caused the dump.”

BTC Price Outlook

Woo said the market was in a local bearish environment within a macro bull market, which is a “consolidation and a gift to sat stackers.”

The asset is up over the past 12 hours but remains flat on the day, trading around $57,483. However, it is down about 9% on the week and 17% over the past month.

The $58,000 level will need to be broken for BTC to move above resistance again.

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