On-chain analyst and popular market commentator Willy Woo predicts that Bitcoin will enjoy quite a rally in the first quarter of 2022.
Speaking in a recent interview with Scott Melker, Woo said that Bitcoin was gearing up for a massive rally that should occur during the first two months of 2022. He said the momentum for the rally was strong following a price pullback which led to an accumulation phase.
Woo told Melker that Bitcoin was yet to clear the “main run of the bull market” and has instead been in a reaccumulation phase following the sell-off in May.
As reported by The Daily Hodl, Woo said,
That’s when everything’s strong. That’s the main phase of the bull run. We’re not there yet. We’re [still] recovering and setting up for it. I think we’re not going to get there until 2022. [The] early phase, January [and] February might be interesting.
Woo predicted Bitcoin appeared structurally price sound for the next six months, despite having a lackluster December to end the year. He noted the shift in token ownership from short-term holders to long-term holders.
If we’re looking over the next six months, structurally, it’s pretty strong. What gives me confidence about that is that there are really a lot of coins that have been moved to long-term holders who have held their coins for five months or more, and so they’re at maximum accumulation.
Woo claimed long-term holders were slowly divesting, driving the prices for BTC higher. He argued that even with profit-taking the shift towards long-term holding was preventing the development of a bear market.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.