Quiet phase „almost over“ – Bitcoin record run could continue soon
Willy Woo sees good signs for a continuation of Bitcoin’s big uptrend soon.
Although Bitcoin (BTC) has yet to crack its recent record high again despite the current upswing, one of the most respected crypto analysts is convinced that the conditions are good for it to do so.
Accordingly, the statistician Willy on 11 March cites several indicators that point to an imminent end of the current sideways movement and Bitcoin Union suggest a further climb.
Bitcoin flows to the „strong guys“
Bitcoin regained strength yesterday (Thursday), with the BTC/USD currency pair reversing the previous downturn to US$54,400 into a bounce up to US$57,200.
However, even with this bounce, the market-leading cryptocurrency did not make it out of the wide price range that lies between the record support of US$46,000 and the new high of US$58,300.
Nevertheless, Woo’s forecast is optimistic, which he attributes to investors with short-term intentions increasingly exiting the market and being replaced by those with more long-term intentions.
„The recent downturn has been bought up by the strong guys,“ as he explains accordingly, referring to a chart (see below) from which it can be deduced that the associated bitcoin assets have flowed into wallets „that are known to sell little“.
From this he concludes:
„The second major sideways move of the record 2021 run is almost over.“
If these „strong“ investors hold instead of selling straight back, the price should continue to move upwards, because the smaller the available supply becomes.
Bitcoin flowing to investors willing to hold (red). Source: Willy Woo/ Twitter
In the process, the price trend downwards is hedged by higher supports, because as data from crypto market research institute Glassnode shows, there has also been increased buying at US$55,000 recently.
Critics ignore opportunity costs
This optimistic outlook belies emerging criticism from the crypto industry and wider public that denies the market-leading cryptocurrency is a sensible investment product.
Among them is notorious Bitcoin hater Peter Schiff, who this week found it hard to believe that his own son is now completely bullish on the crypto market leader.
„He sold his last silver shares to free up cash,“ Schiff said on Wednesday. To this he added spitefully:
„If my own son is already so brainwashed, you can imagine how susceptible many other young people are to this as well. He has now gone completely hop or top.“
Given the high level of interest from institutional investors, however, crypto advocates warn against ignoring the asset class.
„Anyone in the world can invest in bitcoin. If you have your money invested in any other form, you are ignoring Bitcoin,“ as Saifedean Ammous, author of the popular book „The Bitcoin Standard“, accordingly opines. Thus, he adds:
„As long as you don’t outperform the appreciation of Bitcoin with it, you are losing money. Bitcoin is the new universal unit of account for opportunity cost.“