Bitcoin has not entered a bear market, as long-term hodlers continue to accumulate assets on their wallets, and on-chain indicators point to a reversal in the negative price dynamics of digital gold. This was stated by analyst Willy Woo on Peter McCormack’s What Bitcoin Did podcast.
In Woo’s view, long-term holders of the first cryptocurrency were very active in 2021, but at some point “all the coins moved into weak hands — to speculative traders”.
The analyst believes the market is in a speculative phase. He says that the cryptocurrency sold at the start of the year is gradually returning to hodlers’ wallets.
McCormack also noted that he has not sold a single coin from his portfolio. He remains confident in a market recovery, because “there are too many interesting and good things happening.”
Woo stressed that the current cycle is unlike any the market has seen before, because its “fundamental structure” is completely different.
“The price moves in a sideways bear trend, resembling the Wyckoff accumulation model. If it works, we should get the final wick to $28 000-$29 000, which should have been the last bottom test. All on-chain indicators look as if the price is recovering,” he explained.
Santiment analysts have also seen signs of a market recovery. They noted that Bitcoin’s supply on cryptocurrency exchanges has been steadily shrinking, while the volume of assets in non-custodial wallets is growing.
👍 Following #Bitcoin‘s mid-May dip, the supply of $BTC sitting on exchanges has steadily fallen back down and locked away for safe keeping by hodlers. This is a good sign for #bulls, as funds moving away from exchanges lowers the risk of major sell-offs. https://t.co/ABkcih9ea1 pic.twitter.com/NqU3ljRyIH
— Santiment (@santimentfeed) June 30, 2021
Over the past 24 hours, Bitcoin’s price fell by 3.5%, according to CoinGecko. At the time of writing, the asset was trading at $33,603.
Earlier, CryptoQuant CEO Ki Young Ju said that the whale capitulation index indicates Bitcoin’s transition into a bear market.
According to Woo, the fundamental value of the first cryptocurrency exceeds its market value, as indicated by the NVT indicator.
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