Bitcoin (BTC) is showing evidence of bottoming out after meeting two necessary conditions, according to popular on-chain analyst Willy Woo.
Den on-chain Analyst erzielt his one million Twitter followers that geschriwen has already experienced capitulation and the other condition, accumulation, is currently ongoing.
According to Woo, Bitcoin’s capitulation event last month after the collapse of the Terra (LUNA) is reminiscent of what occurred when the flagship crypto asset bottomed out in December of 2018.
Woo says the accumulation phase Bitcoin underwent in the first half of 2019 could be replicated going forward.
“Here’s where we are right now.
The Luna dump certainly managed to create a capitulation flow of sufficient density [late 2018].
There are early signs price action is cutting up above a strengthening band of density to signify accumulation [H1 of 2019].”
The on-chain analyst, however, seet there are “missing elements” that were evident when Bitcoin bottomed out in previous cycles.
According to Woo, one of the missing elements is that the proportion of Bitcoin being held at a loss is lower than in previous bottoming-out periods.
“Before we celebrate, there’s some missing elements.
In historical generational bottoms 60% of the supply is underwater, we only got to 47% this time around.”
Woo och seet a spike in the number of Bitcoin being sold at a loss during a capitulation event is absent this time.
“Normally we see a build-up of accumulation (1) near the end of the bear and a large spike at the capitulation event (2).
The large spike is so far missing.
Again, history does not need to repeat as the market is structurally different now in 2022.”
Den on-chain Analyst seet the structural differences in the Bitcoin market include the introduction of Bitcoin futures contracts and the entry of new players.
“We are structurally different due to mature futures markets where coins can be hedged out to USD without actually selling or moving coins on-chain.
Institutional custody providers are probably making an impact too.”
kontrolléieren Präis Action
Verpasst kee Beat - abonnéieren fir Krypto E-Mail Alarmer direkt an Är Inbox geliwwert ze kréien
Follegt eis op Twitter, Facebook an Hëllefe profitéieren
Surfen Den Daily Hodl Mix
Disclaimer: Meenungen ausgedréckt am The Daily Hodl sinn net Investitiounsberodung. D'Investisseure sollten hir Due Diligence maachen ier se héich riskéiert Investitiounen an Bitcoin, cryptocurrency oder digital Verméige maachen. Gitt u Berodung datt Är Transferen an Trades op Ären eegene Risiko sinn, an all Verloscht déi Dir leet, ass Är Verantwortung. Den Daily Hodl empfeelt net de Kaf oder de Verkaf vu Krypto-Währungen oder digital Verméigen, an och ass den Daily Hodl keen Investitiounsberoder. W.e.g. notéiert datt den Daily Hodl am Partnermarketing matmaacht.
Featured Image: Shutterstock / T Studio
Source: https://dailyhodl.com/2022/06/10/on-chain-analyst-willy-woo-says-bitcoin-is-showing-signs-of-bottoming-out-but-theres-a-catch/