Willy Woo Explains Bitcoin’s Holder Behavior And Its Impact On BTC Price
A leading Bitcoin on-chain analyst Willy Woo looks into Bitcoin’s on-chain metrics to understand the current market sentiment.
In the latest episode of The Bitcoin Forecast, Woo shared insights on Bitcoin’s long-term holders (LTHs) versus short-term holders (STHs).
Investors who have held Bitcoin longer than five months are considered long-term holders, while investors with coins younger than five months are considered short-term holders.
According to Woo when LTHs reach peak accumulation, BTC usually sparks a strong rally that allows long-term holders to unload their holdings to a next batch of short-term holders.
LTH’s just peaked within the last few weeks, says 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.”
According to Woo, LTHs with strong hands have accumulated all the BTC they can, signaling that a bear market is unlikely to manifest. The analyst says the bull run will likely continue for as long as it takes for LTHs to sell off their coins to the STHs, although it’s hard to predict how long it will take.
“So structurally this is quite bullish. The strong-handed guys have all their ammo. I don’t see any kind of bear market when we zoom out…
Typically, this is a sign of strength, so depending on how long this starts to drop down into these lower regions, we’ll give us a timing signature on how long our bullish phase of the market will run for…
I’m expecting this run to continue, and maybe it goes into midway of 2022, maybe this chops around a lot. It yet to be seen, but long-term it’s structurally bullish.”
