Top on-chain analyst Willy Woo says that Bitcoin (BTC) is in an accumulation phase similar to the market bottoms of 2015 and 2018.
In a new interview with Scott Melker, Woo says that buyers have recently stepped in to support Bitcoin, lowering its volatility and putting it in a sideways trend.
“It’s that time in the cycle really that the accumulation does come in, right? People buy, they put a floor on the price, the volatility drops. And we saw that in the 2018 bottom, 2015 bottom. We even saw it in the 2012 bottom. So, yeah, sure, people are holding the price up because they want Bitcoin.”
Woo says BTC is showing resilience in the face of market headwinds, including crypto lending firm BlockFi’s recent bankruptcy filing.
“It’s being absorbed. What was really interesting with the BlockFi bankruptcy, we saw a sort of pullback. It went down beforehand. I kind of think that was inside sellers, knowing that the announcement would happen. It went down $500 or something like that and it got quickly absorbed. And then now we’re breaking to the upside. So I think we’ve got a lot of buyers at this price.
Certainly, the indicators I have are showing when you see a lot of coins moving and the price going sideways that’s a sure sign of accumulation. So that’s been happening. I’m tracking it. That’s the reason why it’s going sideways.”
As far as what price Bitcoin could potentially bottom out, the analyst has his eye on somewhere between $14,000 and $10,000, which he previously revealed as part of a “max pain model” last week.
“$12,000 wouldn’t shock me. $10,000, I think everyone’s wanting and so it usually doesn’t happen what everyone wants. So $12,000 wouldn’t shock me, $12,000, $13,000. It may run away from here or it may drop even further. These are very broad-stroked indicators. But it’s probably not a bad time to dollar-cost [average] in.”
At time of writing, Bitcoin is trading hands at $16,798.
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