Closely followed crypto analyst Willy Woo is looking at retail traders of Bitcoin (BTC) and noticing something he hasn’t seen since the Covid-19 crash of March 2020.
In a tweet to his 923,100 followers, Woo shares a chart showing the amount of BTC that retail traders have been accumulating.
According to the analyst’s chart, retail traders are buying up Bitcoin’s current market correction as quickly as they did during the pandemic-induced crash last year.
“The last time retail bought the dip this hard was at the bottom of the COVID crash.
Woo also shares a chart showing how Bitcoin HODLers, or holders with little history of selling, have historically bought the dip and how they are doing so now, as well.
“Buying the dip visualized (spot volumes seen on-chain). It has been happening, it’s moderate, but most importantly, as yet [there are] no signs of a further sell-off cascade.
Also worth keeping in mind longs have already been flushed.”
Woo’s tweets come on the heels of the on-chain analyst saying that when long-term holders (LTHs) reach peak accumulation, BTC tends to ignite a strong rally that allows long-term holders to unload their holdings to a new batch of short-term holders.
According to Woo’s data, LTHs just peaked within the last few weeks.
“Long-term holders are at their peak, and so generally when we’re this zone, you’ve got peak accumulation. These guys tend to sell down in the rallies.
You saw that in the last rally from October last year, and when they run out of ammo, the short-term holders hold those coins, generally the new weak hand investors…
We’re in the strong area that has been selling down meaning they have instigated taking profits.”
Bitcoin is trading at $47,014 at time of writing, down 1.5% on the day and 27.5% on the month.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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