A transfer of more BTC from weak to strong hands has set the scene for fresh upside, says Willy Woo.
Bitcoin (BTC) may be having problems cracking all-time highs but one of its best-known analysts believes its sideways trading is “nearly complete.”
In a series of tweets on March 11, Willy Woo pointed to multiple on-chain factors suggesting that fresh BTC price upside is imminent.
BTC flows to those with “very little” selling history
Bitcoin saw a return to form on Thursday after a dip to $54,400 abruptly reversed, sending BTC/USD to highs of $57,200.
With buyer support in evidence, the pair is nonetheless still to break out of its current wide trading range, bordered by record support at $46,000 and the current all-time highs of $58,300.
For Woo, however, weak hands evaporating and stronger ones stepping in formed the backbone of a bullish take which calls for the end of this consolidatory price phase.
“Strong hands came in to buy this latest dip,” he said, alongside a chart showing BTC flowing to wallets “with very little history of selling.”
“The second major consolidation of the 2021 bull market is nearly complete.”
Data tracking changes in the liquid supply of Bitcoin showed more and more leaving the market during March.
On the topic of support, Woo pointed to data from on-chain monitoring resource Glassnode showing that even at $55,000, Bitcoin was a popular purchase among investors.
“A nice confirmation of the validity of these price levels,” he added.
Bitcoin critics ignore “opportunity cost”
The buoyant perspective counters the remaining naysayers from within cryptocurrency and the mainstream media, who continue to claim that the Bitcoin is anything but a sensible investment opportunity.
Among them was gold bug Peter Schiff this week, who balked at news that his son, Spencer, had reportedly gone 100% Bitcoin.
“He sold the last of his #silver stocks to raise the cash,” he tweeted on Wednesday.
“If my own son is this brainwashed imagine how vulnerable most kids are. He’s HODLing to infinity or bust.”
With institutional engagement still in full swing, however, Bitcoin proponents delivered repeat warnings about the consequences of ignoring the largest cryptocurrency as an asset class altogether.
“Anybody in the world can get bitcoin. If you kept your money in anything else, you are forgoing bitcoin,” Saifedean Ammous, author of the popular book, “The Bitcoin Standard,” summarized.
“Unless you are beating bitcoin appreciation with whatever you’re doing, you’re losing satoshis. Bitcoin is the new universal unit for measuring opportunity cost.”