Popular on-chain crypto analyst Willy Woo has suggested that Bitcoin ($BTC) is seeing unparalleled demand on the spot market coming from institutional investors who are accumulating the flagship cryptocurrency.
According to a tweet Woo shared with his over 1 million followers on the microblogging platform Twitter, the price of Bitcoin has been moving sideways because of institutional investors selling “futures contracts in a macro risk-off trade.”
Meanwhile, Woo said, institutional investors are “scooping spot BTC at peak rates and moving to cold storage.” Moving to cold storage, it’s worth noting, means investors are moving the funds to offline wallets to hold them for a long period.
Woo likened the accumulation to one that occurred in the last quarter of 2020, ahead of what he deemed a “supply shock squeeze” that led to the price of the flagship cryptocurrency exploding. At the time, shortly after PayPal launched a service letting users buy, sell, and hold crypto, BTC’s price moved from around $11,000 to a new high near $70,000 before correcting.
The on-chain analyst added that BTC’s price has been outperforming equities while the U.S. Dollar Index (DXY) moves up, which to him is a “testament to the unprecedented spot buying happening right now.”
To him, investors “already see BTC as a safehaven,” but this will take time to reflect on the cryptocurrency’s price. Woo advised his followers to “wait for the futures sells to run out of ammo.”
Woo also pointed out to Peter Brandt, a veteran trader who called Bitcoin’s 84% decline in 2018, that the Tom DeMark (TD) sequential, which is an indicator designed to identify turning points in market trends, has flashed a major bearish reversal for the DXY.
As the DXY is facing “multiple technical resistances,” he said, it could fail to breakout further, potentially leading to a crypto market rally.
Brandt, as CryptoGlobe reported, has recently revealed he believes the price of the flagship cryptocurrency Bitcoin is set to move to the $28,000 mark after the “completion of a bear channel,” which typically leads to a decline.
Other analysts are more bullish long-term, however. The co-founder and former CEO of crypto derivatives exchanges BitMEX Arthur Hayes has suggested the cryptocurrency could trade at $1 million in 2030 amid a decline of the European Union and the United States.
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.
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