According to leading Bitcoin on-chain analyst Willy Woo, Bitcoin (BTC) retail trader behavior right now is very similar to when BTC Covid-19 crash of March 2020 happened.
Woo shared a chart with his 923K Twitter followers, showing the amount of BTC that retail traders have been accumulating.
According to the chart, retail traders are buying Bitcoin’s current market correction as heavily as they did during the crash last year, which could send the price soaring same as it did back then.
“The last time retail bought the dip this hard was at the bottom of the COVID crash.
Probably nothing, few, etc etc.”
The last time retail bought the dip this hard was at the bottom of the COVID crash.
In another tweet the analyst a chart visualizing how Bitcoin HODLers have historically bought the dip and how they are sticking to that behavior once again.
“Buying the dip visualized (spot volumes seen on-chain). It has been happening, it’s moderate, but most importantly, as yet [there are] no signs of a further sell-off cascade. Also worth keeping in mind longs have already been flushed.”
Buying the dip visualised (spot volumes seen on-chain). It has been happening, it's moderate, but most importantly, as yet there's no signs of a further sell-off cascade. Also worth keeping in mind longs have already been flushed. pic.twitter.com/j5cjUOIGmA
The analyst has previously argued that when long-term holders (LTHs) reach peak accumulation, Bitcoin tends to go up rapidly allowing long-term holders to unload their holdings to a new batch of short-term holders.
LTH’s just peaked within the last few weeks or so, according to Woo.
“Long-term holders are at their peak, and so generally when we’re this zone, you’ve got peak accumulation. These guys tend to sell down in the rallies. You saw that in the last rally from October last year, and when they run out of ammo, the short-term holders hold those coins, generally the new weak hand investors…
We’re in the strong area that has been selling down meaning they have instigated taking profits.”
At the time of writing Bitcoin is trading at $48,039, up 2% on a daily chart.
