On-chain analyst Willy Woo explained that the Bitcoin (BTC) price has historically seen unparalleled spot market demand despite the negative moves that have taken place over the past few weeks.
Popular analyst tells one million Twitter followers that institutional capital is flowing into Bitcoin. told. On the other hand, the analyst thinks that the current price action of BTC is similar to the price action of late 2020, just before the crypto markets started the big rally.
“Bitcoin price is flat because Wall St is selling a futures contract in a macro risk aversion trade. Meanwhile, the institutional investor collects BTC at the highest rates and moves it to their cold wallets.
At times like this, I remember the supply shock crunch in Q4 2020.”
According to Woo, given Bitcoin’s ability to prevent collapse in the face of a steep stock market correction, investors may be seeing BTC as a safe-haven asset class.
“The fact that BTC is holding on well as stocks fall and the USD Index rises is testament to the unprecedented spot buying happening right now.
In other words: investors already see BTC as a safe haven. It will take time to reflect on the price. Wait until the futures ammo runs out.”
In the short term, Woo says Bitcoin is facing headwinds from macroeconomic factors. However, he adds that the USD dollar index (DXY) is at a critical level of resistance, which could result in a rejection that could help Bitcoin and other assets spark rallies.
Woo also pointed out that the TD (Tom DeMark) rank, an indicator that attempts to identify turning points in trends, signals a huge bearish for DXY. He did this while responding to veteran trader Peter Brandt’s post on Twitter.
TD9 reversal on the monthly and weekly candles. Will be interesting to see what happens next week.
— Willy Woo (@woonomic) April 28, 2022
When the TD sequence records nine consecutive candles above the close of the previous four candles, it creates a TD9 signal. Woo said that DXY officially sheds light on a TD9 that could have major implications for Bitcoin and other assets in the near future.
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.