Leading blockchain analyst, Willy Woo, estimated that Bitcoin (BTC) is in a “build-up” phase, similar to the market lows of 2015 and 2018.
In an interview, Woo explained that buyers have returned to support Bitcoin, reducing its volatility and putting it on an upward trend:
“It’s that moment in the cycle when accumulation happens. People buy, they put a floor on the price and therefore the volatility is reduced. And we saw that at the bottom of 2018 and the bottom of 2015. We even saw it at the bottom of 2012. So, yeah, sure, people are keeping the price up because they want Bitcoin.”
Woo noted that BTC is showing resilience in the face of… market headwinds, such as the recent bankruptcy of cryptocurrency lending company, BlockFi, as well as several other negative developments.
“It’s being absorbed. What was really interesting with BlockFi’s bankruptcy is that we saw a kind of backlash. It went down in price before the bankruptcy announcement. I think that was due to inside information that sellers had, as it seems like they knew the announcement was coming. It dropped $500 or so, however that drop was quickly absorbed. Now we’re going up. So I think we have a lot of buyers at this price.
Sure, the indicators I have show up when you see a lot of coins moving and the price going in the opposite direction (i.e. up), this is a sure sign of accumulation. So that is what is happening. I’m watching it. That’s why it’s going in the opposite direction (upwards).”
As for the price of Bitcoin and what its bottom may be, the analyst believes it is between $14,000 and $10,000, which Woo described as a “maximum pain pattern” last week.
“$12,000 wouldn’t shock me. $10,000, I think everybody wants that price and so usually what everybody wants doesn’t happen. So $12,000 wouldn’t shock me, $12,000-$13,000. It can get away from here or it can go down even further. These are very broad range indicators. But it’s probably not a bad time for dollar cost averaging,” he said.