As the price of Bitcoin stubbornly continues to move sideways, market watchers wonder how the year will end.
Despite the tight trading range over the past two weeks, popular Bitcoin on-chain analyst Willy Woo pointed to indicators that show no signs of a bear market.
A significant rebound in prices?
According to Woo, retail investors are profiting from the bearish price action – buying the downside more than usual.
“The last time retail bought the decline this hard was at the bottom of the COVID crash,” Woo wrote on Twitter, while posting a retail accumulation chart.
The last time retail bought the decline this hard was at the bottom of the COVID crash.
Probably nothing, little, etc. etc. pic.twitter.com/HuxNxYMl48
– Willy Woo (@woonomic) December 14, 2021
“Probably nothing,” he added, leaving his 925,400 followers to decide for themselves whether the metric signals that bullish momentum may return soon.
“Real bear markets don’t come from sellers but when we run out of buyers,” he concluded.
No sign of another massive sales cascade
Earlier this week, Woo already pointed out that demand from chain investors shows no signs of a bear market.
Purchase of the visualized dip (one-off volumes seen in a chain). This has happened, it is moderate, but more importantly, there is no sign of a new cascade of massive sales as of yet. It should also be borne in mind that the longs have already been rinsed. pic.twitter.com/j5cjUOIGmA
– Willy Woo (@woonomic) December 13, 2021
“The long-term holders have sold and taken a profit, but as a cohort they continue to be in a peak accumulation region,” Woo wrote in his latest newsletter.
Long Term Holders (LTH) are defined as those who hold coins, in this case Bitcoin, for more than five months, and Woo sees them staying in a peak accumulation region as an indicator that “we are still in. a bullish macro-region “.
“Bear markets coincide when these holders have divested themselves of their coins, despite the fear of the market, we are structurally not ready for a bear market,” he added.
While focusing on the HODLers buying the downside, the analyst argued that “there is no sign of a new sales cascade”.
Purchase of the visualized dip (one-off volumes seen in a chain). This has happened, it is moderate, but more importantly, there is no sign of a new cascade of massive sales as of yet. It should also be borne in mind that the longs have already been rinsed. pic.twitter.com/j5cjUOIGmA
– Willy Woo (@woonomic) December 13, 2021
Which level will give way – support or resistance, remains to be seen.
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