On-chain analyst Willy Woo thinks turmoil in global markets is causing crypto investors to ignore the fundamentals of Bitcoin and sell their BTC.
Woo tells his one million Twitter followers that futures selling led this week’s sudden bearish move. told. On the other hand, the popular trader is not sure if the Bitcoin price has reached the bottom yet. added.
“Is this a dip? I do not know. In fear-driven trading, the fundamentals stay in the background. I think we don’t trade BTC, we trade macros and stocks.
The right of the chart is the SPX, which will determine the BTC direction [Standard & Poor’s 500 Endeksi] support, the left pane is the equivalent BTC support.”
Bitcoin is trading at $28,398 at the time of writing. The top-ranked crypto-asset by market cap has dropped more than 9% in the last 24 hours and more than 28% compared to last week.
Alongside these, Woo states that the liquid supply shock rate of Bitcoin (BTC) has fallen off a cliff.
“The supply shock is the ratio of owner-held coins to non-owners. Roughly 84,000 BTC moved away from buyers…”
The analyst noted that a big reason for this high number is the Luna Foundation Guard (LFG), a non-profit organization established to support the Terra (LUNA) ecosystem.
According to BitInfoCharts, LFG emptied its wallet with a balance of more than 42,500 BTC on Monday to help protect the UST stabilizer.
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.