This Bitcoin on-chain analyst says retail hasn’t “bought the dip this hard” since the Covid crash This Bitcoin on-chain analyst says retail hasn’t “bought the dip this hard” since the Covid crash
Ever since the plunge on December 3, Bitcoin price has been struggling to move past the $50.000 resistance.
2 min read
Updated: Dec. 16, 2021 at 8:10 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
While the Bitcoin price continues to stubbornly move sideways, market watchers are wondering how the year will end–is there time for another rally or will the support at $46.000 cave?
Despite the tight trading range over the past two weeks, popular Bitcoin on-chain analyst Willy Woo pointed out indicators that are showing no signs of a bear market.
Meaningful price bounce ahead?
According to Woo, retail investors are taking advantage of the bearish price action–buying the dip more than usual.
“The last time retail bought the dip this hard was at the bottom of the COVID crash,” wrote Woo on Twitter, while posting a retail accumulation chart.
The last time retail bought the dip this hard was at the bottom of the COVID crash.
Probably nothing, few, etc etc. pic.twitter.com/HuxNxYMl48
— Willy Woo (@woonomic) December 14, 2021
“Probably nothing,” he added, leaving it up to his 925.400 followers to decide for themselves whether the metric is signaling a bullish momentum could soon return.
“True bear markets happen not from sellers but when we are out of buyers,” he concluded.
No signs of a further sell-off cascade
Earlier this week, Woo already pointed out that the on-chain investor demand is showing no signs of a bear market.
Buying the dip visualised (spot volumes seen on-chain). It has been happening, it's moderate, but most importantly, as yet there's no signs of a further sell-off cascade. Also worth keeping in mind longs have already been flushed. pic.twitter.com/j5cjUOIGmA
— Willy Woo (@woonomic) December 13, 2021
“Long term holders have been selling down and taking profits, but as a cohort they continue to be in a region of peak accumulation,” wrote Woo in his last newsletter.
Long term holders (LTHs) are defined as those holding coins, in this case Bitcoin, for longer than five months, and Woo sees them remaining in a region of peak accumulation as an indicator that “we are still in a bullish macro region.”
“Bear markets coincide when these holders have divested of their coins, despite the fear in the market, structurally we are not set up for a bear market,” he added.
As he focused on HODLers buying the dip, the analyst argued that “there are no signs of a further sell-off cascade.”
Buying the dip visualised (spot volumes seen on-chain). It has been happening, it's moderate, but most importantly, as yet there's no signs of a further sell-off cascade. Also worth keeping in mind longs have already been flushed. pic.twitter.com/j5cjUOIGmA
— Willy Woo (@woonomic) December 13, 2021
Which level will cave–support or resistance, remains to be seen.
