Popular on-chain analyst Willy WooHe said that Bitcoin should soon finish its correction before starting the upward price action.
Speaking in an interview with Peter McCormack on “What Bitcoin Did,” Woo said that Bitcoin’s on-chain fundamentals appear healthy and nothing out of the ordinary.
According to the analyst, Bitcoin (BTC) It is trading in an accumulation range and doesn’t look ready to start a big rally yet.
“I don’t see anything out of the ordinary here. This is a very constant accumulation phase by long-term investors. He looks healthy. This thing is not going to jump out of the water and there aren’t enough “short positions” in the system to squeeze it that fast. There are longs in the system that need to cool down.”
The closely followed analyst stated that for now, the demand for BTC is consolidated and the coins are in the hands of investors with a strong belief.
“I just see it as consolidation… Consolidation means it goes down and tests and then it goes up without crashing. While consolidating, demand is increasing, HODLers (long-holding ones) are buying, speculative guys… HODLers are holding strong for swing trading when buying, so there isn’t much selling.
If anything, we expect derivatives men who are only on the short-term contract to give up their long positions and then exit that trade. ”
Based on derivatives data, Woo stated that Bitcoin may be ready to continue its bull market in the next few days:
“We are getting pretty close. The derivatives data I’m looking at is probably a few days before the next leg rises, we just need to see the trend continue but we are very close to this consolidation base. There is undoubtedly a lot of demand, a lot of coins are collected from exchanges.”
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