Posted 11 months ago | by Catoshi Nakamoto
Popular Bitcoin technical analyst Willy Woo has stated that he believes this is not the start of a bear market as on-chain indicators are signaling a recovery while the digital asset is being bought by long-term hodlers.
Woo made the remarks during an interview on the “What Bitcoin Did” podcast hosted by Bitcoin maximalist Peter McCormack on June 28th. Woo stated that he does not believe that Bitcoin is in its typical bear market cycle due to signs of accumulation visible on-chain.
Woo made a reference to the 1980’s hit song “Never Gonna Give You Up” by British artist Rick Astley while discussing Bitcoin.
Stating:
“The ‘Rick Astley’ is the holder that keeps buying and never tends to sell much … And of course Rick was very active over 2021, and then suddenly all the coins moved away from Rick to the weak hands — the speculative traders that buy and sell. Now we’re seeing that cross back into moving to Rick.”
Woo further expressed that we are right now in a speculative phase, stating that the coins that were sold are slowly being absorbed by long-term holders of the number one digital asset. McCormack agreed with Woo and said that he hasn’t sold any of his digital assets yet.
Analyzing the current Bitcoin price chart, Woo declared that this cycle unlike any we’ve ever seen.
He stated:
“The price right now is going sideways bearish, it looks like a Wyckoffian accumulation price pattern and so if that plays out we should have that last wick down to $28K-$29K which should have been the final test of the bottom. Everything on-chain looks like it’s in recovery.”
Analytics firm Santiment appears to have much of the same sentiment around the market. The firm expressed in a recent tweet that the supply of Bitcoin being held on exchanges has firmly fallen down and is being locked away for safekeeping by hodlers.
👍 Following #Bitcoin's mid-May dip, the supply of $BTC sitting on exchanges has steadily fallen back down and locked away for safe keeping by hodlers. This is a good sign for #bulls, as funds moving away from exchanges lowers the risk of major sell-offs. https://t.co/ABkcih9ea1 pic.twitter.com/NqU3ljRyIH
— Santiment (@santimentfeed) June 30, 2021
Mike McGlone, a senior market strategist at Bloomberg Intelligence, agrees with Woo stating on June 23rd he sees a long-term bullish view on Bitcoin.
#Bitcoin's $30,000 Line in the Sand Similar to $4,000 in 2019-20: Selling Bitcoin around good support & similar dips below most means as about $30K this year hasn't ended well, and if the key question this time around is whether it's different, we see a more-enduring bull market. pic.twitter.com/SY4YclQY3Z
— Mike McGlone (@mikemcglone11) June 23, 2021
McGlone argued that $30,000 was similar to $4,000 after the 60% black swan crash of March 2020 — calling the current channel a “line in the sand.”
“Selling Bitcoin around good support & similar dips below most means as about $30K this year hasn’t ended well, and if the key question this time around is whether it’s different, we see a more-enduring bull market,” McGlone said.
Other indicators like the NUPL seem to indicate much of the same as William Clemente III pointed out on Twitter. Further, asset managers seem to be flipping bullish as well with several betting on Bitcoin rising at the CME. CFTC data for Jun 15th shows asset managers having 517 long bitcoin futures contracts, which bet on a rise in bitcoin prices, a 35% increase over the previous week. The last time asset managers had more than 500 long futures contracts was in Q4 2020 when bitcoin prices initiated a string of record highs, Forbes reported.
You can watch Peter McCormack’s full interview with Willy Woo in the video below.
Bitcoin is currently trading at [FIAT: $34,632.91] DOWN -1.4% in the last 24 hours according to Coingecko at the time of this report.
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