Crypto Whales Leap On Bitcoin In Sudden Buying Frenzy As User Growth Shatters All-Time Highs: Glassnode
The channel’s prominent analyst Willy Woo said deep-pocketed crypto investors were pouncing on Bitcoin amid growing BTC fundamentals.
Woo says that Bitcoin whales, or entities holding between 1,000 and 10,000 BTC, are suddenly buying the main cryptocurrency.
“Whales:” Name name name … BTC so delicious today. “”
The channel’s top analyst adds that the abrupt BTC buying frenzy from whales comes as the number of Bitcoin users hits a new high in 2021.
“Glassnode Data:” Bitcoin User Growth at All-Time Highs for 2021. “
CryptoTwitter Traders: “This is definitely a bear market. “
In a new interview with veteran trader Tone Vays, Woo said a key group of investors is hoarding Bitcoin behind the scenes.
“Unbeknownst to the market right now, strong hands come in and slowly, very lightly, accumulate their coins. And so we’re at ratios right now of the last time at this point here (March 2021), the price was around $ 48,000, $ 49,000 at this level of supply shock, supply shock meaning these guys who hold these coins don’t sell.
Woo adds that the current activity of powerful BTC holders reminds him of Bitcoin’s price action almost a year ago, when it was trading just above $ 10,000.
“Finally, when these guys dominate, [there are] very few parts to have. We are at classic fundamentals diverging from the price. The prices are going down. All technical and chart traders are super bearish. They think $ 20,000 because it’s the next Fib (Fibonacci) level in the main support area. Price action seems to confirm this.
Meanwhile, we have this fundamental divergence happening with strong hands moping up the coins, and I haven’t seen this divergence size from this area here (August 2020). “
Woo points out that in August 2020, Michael Saylor’s business analytics firm MicroStrategy began to rack up BTC heavily as the prevailing sentiment in the crypto markets was bearish. The chain analyst points out that Bitcoin skyrocketed in the following months as it suffered a supply shock.
“I remember it very clearly. People were very bearish and scared as long term holders cleaned up the coin. This ultimately caused the price to rebound when the market realized that a supply shock was in play and the price eventually rose. “
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