Crypto analyst Willy Woo says more Bitcoin investors are hodling than usual during this current resurgence and that the currency might need “to form a base” from which the main bull run can launch.
Woo says the 2019 bull season could be mimicking the structure of Bitcoin’s 2012 jump in value. The analyst notes BTC could consolidate between $7,800 and $9,000 before embarking on a true organic bull run.
Here's the on-chain volume profile for BTCUSD
Red = volume during bears
Green = volume during bulls
Volume bars units is BTC moving on-chain
Notice how few coins are changing hands on-chain in this cycle. I put this down to more HODL activity off-chain, and more lockup. pic.twitter.com/ehwOB4Mnw0
— Willy Woo (@woonomic) July 2, 2019
Mike Novogratz, CEO of Galaxy Digital, is also reading the tea leaves on Bitcoin’s latest consolidation.
In an interview with Bloomberg’s Taylor Riggs, Novogratz says he sees Bitcoin going significantly higher over the next few years. The Bitcoin perma-bull billionaire investor, who is betting on a number of companies that are building blockchain-based infrastructure, eyes $10,000 to $14,000 as the new BTC consolidation range.
Novogratz says institutional investors will fuel higher highs.
“And now it’s a question of taking the time to build out the systems… Things got a little bit carried away and now we’re in a consolidation. Had a run-up to $14,000 and now we’re back down to $10,000… and I think we’re going to see the market consolidate between $10,000 and $14,000 for a while before it takes off to the next leg higher.
And the next leg higher probably comes with the new wave of institutions, the state of ‘x’ – the state of Wisconsin or the Texas teachers union – until you see those guys start coming in, and then you’ll see Bitcoin go towards the old highs of $20,000 and higher.”