On-Chain Analyst: Long-Term Bitcoin Holders Have Been Selling the Rally Since $13k
“Old hands have been selling into this rally since the start of Nov (BTC @$13k)…’
“When PayPal went volume started exploding. The increase in itBit volume implies that within four weeks of going live, PayPal is currently buying almost 70 percent of the new supply of bitcoins. PayPal and Cash App are already purchasing more than 100 percent of newly-issued bitcoins.”
Released at Sat, 21 Nov 2020 23:05:41 +0000
This much has been made clear by the entrance of institutional participants in the cryptocurrency space. These participants will drive Bitcoin higher while old money exits.
Featured Image from Shutterstock
It was 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 fall. Nowadays not always, OG whales also sell bottoms. Smarter money has arrived. Post this now as while there is so much FOMO and strong principles being hammered out, there is also signs of the market being overheated locally. I’d be very surprised if we break all-time-high on the first attempt without a rejection, or consolidation, prior to another run at it.
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 destruction of Bitcoin Days, There’s likely still Wise money that are buying any dips:
Analysts believe that this retail activity will be crucial in driving the price of the leading cryptocurrency to new all-time highs.
Willy Woo, a dominant Bitcoin on-chain analyst, you will find old holders of BTC that are selling their coins into the rally:
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)
While there appear to be many that think the coin will move higher, data shows the coin has been sold to some extent.
Underscoring this, retail money is entering the crypto space en-masse.
Bitcoin has undergone a powerful rally over the past month as buyers rush in after the first 2020 crash. The price of the leading cryptocurrency currently trades for $18,600, which is almost the highest the cryptocurrency has traded because the 2017 bull market peak.
Pantera Capital co-CIO Dan Morehead recently wrote on the Subject of PayPal’s users accumulating a large percentage of the Bitcoin being mined: