Bitcoin has undergone a strong rally over the past few weeks. The coin has rallied from the $9,800 lows in early September to $11,400 now. Bitcoin may retrace in the near term, analysts say, as it faces down increased selling pressure. Despite these short-term bearish signs, the long-term trend remains bullish. Noted on-chain analyst Willy Woo says that Bitcoin’s long-term trend is still decisively positive despite short-term downside risks. What’s Next for Bitcoin?

Leading on-chain analyst Willy Woo thinks that Bitcoin will drop towards the CME gap in the low-$11,000s in the near future. The analyst noted that the cryptocurrency has a number of bearish factors that suggest it will drop toward that level:

“This is short term technical analysis instead of my normal fundamentals; be warned short term analysis is much lower reliability, more for casino players. SUMMARY: I suspect the last CME gap (what’s left of it in green) may get filled.”

First and foremost, Woo noted that underlying market trends suggest that there is a “hidden distribution” of Bitcoin. Simultaneously, BTC’s chart has begun to resemble a textbook distribution pattern.

This confluence indicates that Bitcoin will slip towards the CME gap at $11,200 in the near future. That would represent a 2-3% drop from current prices.

Despite these short-term factors that could compress upward movement in the Bitcoin price, the long-term trend remains positive.

Woo explained that the cryptocurrency’s on-chain fundamentals remain in bullish mode. He said that he is so confident that if BTC does pull back towards $10,000, it may be wise to deploy capital into the coin:

“The on-chain fundamentals which are 3-6 weeks at the minimum timeframes are still unchanged in bullish mode, if we do get a pullback, I’d take it as a chance to deploy capital into BTC if you missed it in the 10k zone.”

Of note, Bitcoin’s network hash rate recently set a new all-time high. This suggests that miners are more confident than ever that the cryptocurrency will continue higher, meaning that they will be profitable.

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