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Willy Woo, a respected Blockchain analyst, has shared insights on Bitcoin’s unexpected resilience following a recent market sell-off. In a post on his social media account, Woo highlighted that despite a surge in market participants, the price structure has remained intact, reflecting a reluctance in investors to take profits. He emphasized that the SOPR (Spent Output Profit Ratio) indicator has not turned bearish yet, indicating stability. While short-term forecasts require a 24-48 hour window for further confirmation, Woo described the current market scenario as akin to “cracks appearing without breaking the structure,” maintaining a cautious optimism. He also pointed out that recoveries in the stock markets usually take weeks after significant drops.
Triggers of the Market Pressure
According to Woo, the recent pressure in the cryptocurrency market was incited by the announcement of a 100% customs duty on goods to China from November 1st, escalating trade tensions and increasing the flight from riskier assets. Despite this, an upswing in internal Blockchain transactions within Bitcoin 
$94,215 was observed. Woo explained that this inflow creates a protective flow, supporting prices even during corrections. The fact that the SOPR indicator has not broken downward indicates that there hasn’t been a reactive influx of profit-taking among profitable addresses.
Woo also noted sustained demand activity within a 1.5-day observation window. The behavior patterns in both the spot and derivatives markets favor a gradual recovery over widespread panic-induced liquidations. The current market setup, characterized as “bullish yet cracked,” encapsulates both the potential for trend continuation and vulnerability risk.
Anticipating a Short-Term Floor
From a tactical standpoint, Woo indicated a 24-48 hour timeframe for identifying a market floor. If signals remain balanced, a brief consolidation followed by regrouping and tentative rebounds could occur. Conversely, diminished fund flows could lead to a prolonged digestion phase.
Historical patterns of extended recoveries in stock markets suggest the cryptocurrency sector may view cautiously optimistic signals. Woo advised closely monitoring fund flows to detect any disruptions. A shift in SOPR could trigger a chain reaction of profit-taking. Moreover, any developments in trade tension could swiftly influence cryptocurrency pricing through risk appetite and correlation dynamics.
