Willy Woo, a leading analyst on bitcoin and digital currencies, said the data in the chain shows that bitcoin, although it sees levels of “extreme fear” in the index of fear and greed, has not yet entered a downward trend and increasing fear can mean Appropriate terms for more purchases.
According to the Kevin Telegraph, Wu commented on Bitcoin in a podcast called “What Bitcoin Did”, published by host Peter McCormack on January 30. Willie Woo cites key indicators such as the large number of long-term holders (portfolios that have accumulated bitcoins in five months or more) and the increasing rate of accumulation, which shows that the market direction has not changed or declined.
Willie Wu added:
In terms of the internal chain structure, although the fear and greed index shows an increase in fear, the market outlook is not down. No doubt people are very scared that this is usually a good shopping opportunity.
In the short term, “most of these types of downturns cannot be imagined without price increases,” said Willie Wu. In addition, breaking the trend and falling to $ 20,000 does not seem possible. Such a decline will repeat the fall of 12 months in 2018, for a short period of 3 months.
The price of bitcoin has fallen about 44 percent since reaching a record high of $ 69,000 in November, and a major investor’s futures analyst is the main reason for this steady decline and consistent price performance over the past three months. mentioned.
Willow Wu says the growing influx of new traders and the outflow of investors from bitcoin futures markets over the past few years have significantly changed the structure of the bitcoin market. In the new structure, the price is directly related to “the risk-taking and reluctance of large retailers to compare the digital currency market with the stock market”.
Willie Wu says:
If you look at the chain of what investors did from 2019 to 2020, you will see that they are accumulating bitcoins; But this does not affect the price, as the price is set by traders in futures markets.
The analyst also points out key reasons for the trend of bitcoin to remain upward. Willie Wu said factors such as the large number of long-term holders who have not sold their assets for more than five months, traders who have stopped selling bitcoins close to $ 40,000, and the steady rate of accumulation are among the main reasons for the uptrend. trend.
The analyst added:
Most bitcoins in circulation have remained intact for more than five months. The people who did this have kept their bitcoins for five months and do not intend to sell them at a loss. These people will be sellers when profit awaits them. We will see this happen every time bitcoin crosses its historical peak and a really strong trend begins.
If the “newcomers” or new owners of bitcoins are in the majority, he said, this is a sign of market decline.
Willie Wu said at last:
The downward trend in 2018 was at the peak of the period when new people buy bitcoins, and this cycle is repeated again. These owners either sell their assets or behave stubbornly. Those who have decided to keep their bitcoins will also sell their assets in the next upward trend with rising prices.
The publication Famous Analyst: Now is a good time to buy bitcoin first appeared in Digital Currency.