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Analyst on BTC price bottom of $17.6k: Bitcoin 'not there yet'

Published on

January 15, 2023
Read Time:2 Minute, 31 Second

Bitcoin (BTC) market habits will not be but “synonymous” with earlier bear market bottoms, argues one of many high crypto analysts.

in a single Twitter thread On Sept. 14, statistician Willy Woo, creator of information useful resource Woobull, supplied three examples of why BTC/USD ought to fall even additional.

Though many referred to as a recent macro worth backside throughout the June journey to $17,600, not all are assured that Bitcoin will keep away from a retest.

Woo nonetheless has motive to consider that decrease ranges will mark the brand new worth flooring – and this may very well be wherever, together with beneath $10,000.

"Underwater" provide simply earlier than the underside zone

One metric Woo flags is the share of whole BTC provide held at a loss - now value greater than the worth it final moved at.

In earlier bear markets, worth lows have coincided with greater than 60% of cash being underwater.

"When it comes to most ache, the market hasn't felt the identical ache as earlier lows," he warned alongside a chart from on-chain analytics agency Glassnode.

In accordance with this chart, 52% of the provision is presently within the pink, and to achieve the 60% mark, BTC/USD must drop to simply $9,600.

Bitcoin Price Foundation Density Annotated Chart. Supply: Willy Woo/ Twitter

Woo added that on the pit of bitcoin's earlier bear markets, provide at a loss "cleanly" pierced a long-term trendline and can accomplish that once more this time round.

Price base is approaching goal zone

One other telltale signal of the bitcoin market bottoming is the composition of its investor base – long-term (LTH) and short-term (STH) holders.

Sometimes, STHs have a decrease backside line value base than LTHs. Because of this STHs have paid much less for his or her cash than LTHs, the latter being outlined as these holding BTC for 155 days or extra.

"We're shut, however not there but. A bit extra time to burn IMO,” Woo commented.

Bitcoin Hodler Price Base Annotated Chart. Supply: Willy Woo/ Twitter

Beforehand, David Puell, creator of the Puell a number of indicator, referred to as variations in the associated fee foundation an "fascinating" issue for analysts to contemplate.

Accumulation not "synonymous" with historical past

In spite of everything, hodlers giant and small must accumulate even more durable, concludes Woo.

Associated: BTC Value Clings to $20,000 as US Shares Lose the Equal of 4 Bitcoin Market Caps

Alongside a Glassnode chart of bear market accumulation developments, he famous that BTC has not flowed from sellers to “pressing” patrons at a comparable price in 2022 as earlier than.

Annotated Chart of Bitcoin Bear Market Accumulation. Supply: Willy Woo/ Twitter

"Up to now we've not had accumulation ranges which can be equal to earlier lows," he defined.

The views and opinions expressed herein are solely these of the writer and don't essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer includes danger, you must do your individual analysis when making a call.

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Azeez Mustafa
Azeez began his FinTech career path in 2008 after growing interest and intrigue about market wizards and how they managed to become victorious on the battlefield of the financial world. After a decade of learning, reading and training the ins and outs of the industry, he’s now a sought after trading professional, technical/currency analyst and funds manager – as well as an author.
Last Updated : January 15, 2023
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