The bitcoin (BTC) price touched US$30,000 this week, a 90-day low level. This has led many weak hands to sell their holdings. Over 1.1 million such weak hands have sold their BTC holdings. Reports say that most of these traders and investors entered the market in 2021 and squared off their open positions in a loss. However, the whales have bought over US$5 billion worth of Bitcoin after the price reached near the US$36,000 level.
In an interview with podcaster Peter McCormack on May 21, 2021, a popular Bitcoin (BTC) analyst and statistician, Willy Woo said:
“There’s an immense amount of activity on the network between investors compared to the valuation.”
He referred to data from Bitcoin’s NVT ratio (that shows blockchain network activity in relation to market cap) and said many macro indicators point toward Bitcoin’s price positivity.
He explained the current Bitcoin price’s fall by comparing it with that of 2018. He said:
“We haven’t seen any kind of mania… We dumped down from a level which was highly organic – no speculative premium… The 2017 top, for example, we were I think 3.8% higher than the organic evaluation… This is just a middle of the bull market derivatives unwind.”
Willy Woo went on to explain the current situation by reviewing the BTC price’s up and down in the last couple of months. Bitcoin price reached its all-time high (ATH) near the US$65,000 level in April 2021. From the ATH, it fell down below the US$50,000 level over a certain period and again recovered to the US$60,000 level.
While referring to the overall situation currently, Woo said:
“I think it’ll take a bit of time to recover, just from the sheer amount of coins that we dumped out, I think ultimately, if you look at the network health, this is a good thing.”
At this point of the interview, the host McCormack asked:
“So it’s not the end of the bull market?”
“No, not at all.”
The famous statistician looked at his chart to say that the extent of upward movement of BTC price depends on the days to come. However, Willy Woo made it very clear that he expects the price of each Bitcoin (BTC) to increase to higher than US$100,000.
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