Hypersheet co-founder and a well-known analyst for Bitcoin, Willy Woo, has some interesting things about the Bitcoin rise. First, he says that even though the levels of Bitcoin are in the ‘peak fear’ phase, Bitcoin is not exactly a bear market, according to the on-chain metrics. This is a pretty strong statement to make since Bitcoin has been slowly rising the ladder and reaching the $40000 mark on the market. So, such a statement should come forth with research and much more information.
I guess BTC is in demand lately pic.twitter.com/5h1IeMT2lK
— Willy Woo (@woonomic) January 29, 2022
Speaking on a podcast named What Bitcoin Did that was hosted on the 30th of January by Peter McCormack, Woo stated that the key metrics like the long term holders or the wallets that have been holding the cryptocurrency for a period longer than five months as well as other indicators such as accumulation rates that are growing shows that the market hasn’t properly flipped the switch to enter into the Bear territory.
“Structurally on-chain, it’s not a bear market setup. Even though I would say, we’re at peak fear. No doubt about it, people are really scared, which is typically […] an opportunity to buy.” He said.
In such a short period, Woo noted that people would not get this type of a pullback without it being relief bouncing in the first place. Also, he noted that the potential capitulation going down to about $20000 doesn’t appear feasible in this period. There is a chance that it would replicate the crash of 2008 into the bear market space of just two months compared to the original time of one year.
Bitcoin price fluctuations aren’t something that most people don’t know about. However, it has been seen that the Bitcoin price has managed to decline about 44% ever since its highest levels of $69000 during the month of November. Analyst Woo also stated that the key reason for such a decline of Bitcoin was institutional futures trading and the flat performance of the cryptocurrency for the last three months. Woo also suggested that having an elevation on the different mainstream traders and rolling out certain BTC futures markets over the years have made some changes in the structure of the market for Bitcoin to which the price would have a direct correlation.
“You know back in 2019 to 2020, if you looked on-chain at what the investors were doing, they were accumulating, but you just couldn’t see any impact of price because traders on the futures exchanges dictated the price,” he mentioned.
The analyst quoted a large number of long-term HODLers who haven’t sold for more than five months, traders who stopped selling around the $40,000 region, along with a steady rate of accumulation as key reasons to remain bullish.
“Most of the coins have been sitting there for longer than five months, and people who do that, they’ve held on for five months, they’re not selling at a loss, they will sell when there’s profit to be had, and you’ll see that whenever it breaks out of like all-time highs and does a really strong rally.” According to Woo.
He also made an argument mentioning the key indicator for bear markets and saying that it occurs when “newbs” or new coin Holders are present in the majority: “The 2018 bear was at peak new guys holding the coins, and the cycle repeats. Those guys either sell or the ones that don’t become hardened HODLers, and they sell on the next rally when it goes even higher.”
