Popular on-chain analyst Willy Woo says that Bitcoin should be finished with its correction soon, before igniting another upward price move.
In an interview with Peter McCormack on What Bitcoin Did, Woo says that Bitcoin’s on-chain fundamentals look healthy and with nothing out of the ordinary to be found.
According to him, BTC has been trading in an accumulation range, and it does not seem ready to ignite a massive move up just yet.
“There’s nothing out of the norm happening here. It’s just very constant accumulation by long-term investors. It’s looking healthy. It’s not like this thing is going to blow out of the water, and there are not enough shorts in the system to squeeze it that fast. We’ve got longs in the system that need to cool off.”
The closely followed analyst says that for the time being, BTC is consolidating while demand goes up and coins flow into the hands of investors with strong conviction.
“I just see it as consolidation… Consolidation means it comes down and tests and then moves up without crashing. As it’s consolidating, demand is increasing, the HODLers are buying, the speculative guys… they’re holding strong for the swing trade while the HODLers are buying so there’s not a lot of selling.
If anything, we’re just waiting for the derivatives guys that are just in it for the short futures contract to give up on their long position and then get out of that trade.”
Woo says that based on derivatives data, Bitcoin may be ready to resume its bull market within the next few days.
“We’re getting quite close. The derivatives data I’m looking at, we’re probably within a few days away from the next leg moving up, just need to see the trend continue, but we’re very close to that consolidation bottom. Undoubtedly a lot of demand, a lot of coins being scooped up out of the exchanges.”
I
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxFeatured Image: Shutterstock/Salamander Nebula