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Bitcoin analyst and co-founder of software firm Hypersheet Willy Woo believes that on-chain metrics show that BTC is not in a bear market despite observing \u201cpeak fear\u201d levels. <\/p>\n
Speaking on the What Bitcoin Did podcast hosted by Peter McCormack on Jan. 30, Woo cited key metrics<\/a> such as a strong number of long term holders (wallets holding for five months or longer) and growing rates of accumulation<\/a> suggest that the market has not flipped the switch to bear territory:<\/p>\n \u201cStructurally on-chain, it\u2019s not a bear market setup. Even though I would say we\u2019re at peak fear. No doubt about it, people are really scared, which is typically […] an opportunity to buy.\u201d<\/p><\/blockquote>\n I guess BTC is in demand lately pic.twitter.com\/5h1IeMT2lK<\/a><\/p>\n \u2014 Willy Woo (@woonomic) January 29, 2022<\/a><\/p><\/blockquote>\n In the short term, Woo noted that \u201cyou don\u2019t often get this kind of pullback without it relief bouncing\u201d and that a potential capitulation down to the $20,000 doesn\u2019t appear feasible as it would replicate the 2018 crash into a bear market in the space of just three months as opposed to a year. <\/p>\n The price of BTC has declined around 44% since its all-time high levels of $69,000 in November, and the analyst cited institutional futures trading as a key reason behind this steady decline and flat performance over the past three months. <\/p>\n Woo suggested that the increasing influx of mainstream traders and roll out of BTC futures markets over the past few years has significantly changed the market structure of BTC in which the price directly correlates to \u201crisk-on risk-off from macro traders looking at traditional stocks.\u201d<\/p>\n \u201cYou know back in 2019 to 2020, if you looked on-chain at what the investors were doing, they were accumulating but you just couldn’t see any impact of price because the price was really dictated by traders on the futures exchanges,\u201d he said. <\/p>\n The analyst cited a large number of long-term hodlers who haven\u2019t sold for more than five months, traders who stopped selling around the $40,000 region along with a steady rate of accumulation<\/a> as key reasons to remain bullish. <\/p>\n Related: <\/em><\/strong>Bitcoin price closes in on $40K, but pro traders are still skeptical<\/em><\/strong><\/a><\/p>\n \u201cMost of the coins have been sitting there for longer than five months and people who do that, they\u2019ve held on for five months, they\u2019re not selling at a loss, they will sell when there\u2019s profit to be had and you\u2019ll see that whenever it breaks out of like all-time highs and does a really strong rally.”<\/p><\/blockquote>\n In terms of adoption, Bitcoin has roughly the same users as the Internet had in 1997.<\/p>\n But Bitcoin’s growing faster. Next 4 years on current path will bring Bitcoin users to 1b people, that’s the equivalent of 2005 for the Internet. pic.twitter.com\/Np9yTR3WkL<\/a><\/p>\n\n
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