Bitcoin price has seen close to 45 percent correction since its all-time high achieved in early November. However, on-chain analyst and co-Founder of software firm Hypersheet Willy Woo believes that the world’s most popular cryptocurrency isn’t exhibiting a “bear market setup” despite factors suggesting it is. Woo claims that key metrics such as a strong number of long-term Bitcoin holders and growing rates of accumulation suggest that the market has not flipped the switch to bear territory yet, although the fear factor is at its peak.
Willy Woo, while speaking to Peter McCormack on the What Bitcoin Did podcast said, “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.”
The on-chain analyst said that the high levels of fear in the market present an opportunity as an upward retracement is likely. “It’s an opportunity to buy. You don’t often get this kind of pullback without it relief-bouncing even. You don’t sort of slide, slide, slide, and then capitulate,” said Woo.
“We’ve come down from $69,000 (roughly Rs. 51.5 lakh) to $33,000 (roughly Rs. 24.5 lakh). It would be hard-pressed to capitulate from $33,000 down to say $20,000 (roughly Rs. 15 lakh). Because that’s like retracing something like a 2018 bear market over two and a half months instead of a year.”
Woo also says that demand for Bitcoin is returning as various investors resume buying.
“Structurally, it’s [Bitcoin] very, very strong and demand started to come back. And the hodlers [long-time Bitcoin holders] that were slightly being just dispirited by the futures traders selling down have stopped selling. They’re rebounding now, and there’s accumulation coming.”
Woo suggested that the increasing influx of mainstream traders and rollout of BTC futures markets over the past few years has significantly changed the market structure of BTC in which the price directly correlates to “risk-on risk-off from macro traders looking at traditional stocks.”
“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 the price was really dictated by traders on the futures exchanges,” he said.
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