- Willy Woo explains HODLers have softened crypto investment adding to recent price dip.
- Analyst reveals, however, that crypto is in a bullish macro-region.
NIGERIA (Coinchapter.com) – Popular Twitter Bitcoin on-chain analyst Willy Woo has explained why Bitcoin (BTC) prices have been experiencing high volatility and substantial drops lately.
In his latest blog post, the crypto analyst attributed the recent price dips to HODLERS, a slang for holders — people who buy Bitcoin with an intention to never sell. Woo revealed that holders buying have softened recently that led to the cryptocurrency’s price pullback after its price reached $69,000 on Nov. 10.
However, the analyst also said that the long-term HODLERS remain in a so-called peak accumulation region, which means the market is still bullish long-term.
“HODLers have been buying the dip. Coins are moving off the exchanges,” said Wood, adding:
“Coins held by HODLers have been rising, recovering from recent weakness. Our on-chain Supply Shock valuation model implies BTC is presently trading at a $6k+ discount.”
Bear market not in sight
While the price has pulled back from highs a month ago, the net flow of coins moving towards HODLers remains in the bullish region, Woo explained.
According to the heatmap above, the analyst states that trading has softened since a month ago, but there has not yet been sufficient sell-off to warrant a deeper bearish phase.
Short term investors buy the dip
Per the analyst, the market currently is in a phase where coins have been moving off exchanges, thereby signifying significant spot demand.
Looking at the on-chain “Supply Shock” demand, Woo says that the structure has been recovering from recent weakness.
According to the heatmap above, HODLers have been moderately buying the dip. Woo’s Supply Shock valuation model finds how the market-priced BTC shows a valuation slightly below $60k.