Popular on-chain crypto analyst Willy Woo, bitcoinof (BTC) commented on the critical factors preventing it from moving upwards and reaching all-time highs (ATH).
“Coin StoriesSpeaking in his series, Woo stated that according to the on-chain metric he examined, Bitcoin (BTC) shows that it is not ready to recover yet.
“If we focus on where we are right now in what I call a ‘supply shock’, the ratio of ‘really strong investors’ to ‘speculative investors’ holding crypto is not at the levels of Q1 and Q2 before May. We are climbing there, but not like when we approached the $64,000 levels. Structurally, I would say we are not in an uptrend on the chain.”
BTCAnother factor that has prevented Bitcoin from reaching higher prices has been the emergence of Bitcoin futures exchange-traded funds (Bitcoin ETFs). According to analyst Bitcoin ETF‘s are leading investors to make ‘derivatives contracts’ instead of buying BTC.
Finally, Woo stated that the greed and euphoria surrounding the Bitcoin market contributed to the stagnant rise of BTC.
“The other thing is that everyone is very, very bullish, but in this case it’s very difficult for the price to go up because there’s a lot of speculative ‘longs’ in the market, which is very profitable.”
According to Woo, market participants need to be in a position where they are unsure of the trend as Bitcoin opens a ‘range’ for potential volatility.
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.