On-Chain Analyst: Long-Term Bitcoin Holders Have Been Selling the Rally Since $13k
While this represents increased selling pressure in this nascent market, Woo isn’t all too worried. He went on to explain that while previous shirts were indicated by spikes in the devastation of Bitcoin Days, there is likely still smart money that are buying any dips:
Published at Sat, 21 Nov 2020 23:05:41 +0000
Pantera Capital co-CIO Dan Morehead recently wrote on the matter of PayPal’s users accumulating a sizable percentage of the Bitcoin being mined:
“When PayPal went live, volume started exploding. The rise in itBit volume implies that within four weeks of going live, PayPal is currently buying nearly 70% of the new supply of bitcoins. PayPal and Cash App are already purchasing more than 100 percent of all newly-issued bitcoins.”
Retail Money Entering En-Masse
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Bitcoin Is Being Sold Into This Rally, On-Chain Data Shows
“Old hands have been selling into this rally since the start of Nov (BTC @$13k)…’
This much was made clear by the entrance of institutional participants in the cryptocurrency space. These participants will drive Bitcoin higher while older money exits.
Willy Woo, a dominant Bitcoin on-chain analyst, you will find old holders of BTC who are selling their coins into this rally:Tags:
Chart of BTC’s price action over the past year and a half with Bitcoin Days Destroyed analysis by crypto dealer Willy Woo (@Woonomic on Twitter)
It used to be that peaks in destruction or dormancy would be a bad sign for the market as old Bitcoins have more experienced masters, thus smarter cash; this could predict a price drop. These days not always, OG whales also sell bottoms. Earning money has arrived. Post this now as while there is so much FOMO and strong fundamentals being blasted out, there is also signs of the market being overheated locally. I would be very surprised if we break all-time-high on the first attempt without a rejection, or consolidation, prior to another run at it.
Bitcoin has undergone a strong rally over the past month as buyers rush in after the early 2020 crash. The purchase price of the leading cryptocurrency currently trades for $18,600, which is nearly the highest the cryptocurrency has traded since the 2017 bull market peak.
Analysts believe that this retail activity will be crucial in driving the purchase price of the leading cryptocurrency to new all-time highs.
Underscoring this, retail money is entering the crypto space en-masse.
While there appear to be many that think the coin will move higher, data shows the coin has been sold to some extent.Previous ArticleBitcoin Near Crucial Juncture: Why BTC Could Surge Above $18.8K
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