Bitcoin price decline to $21,000 is actually not a bad thing, says this analyst
The Bitcoin price may have dropped to $21,000, but this analyst says that’s not an entirely bad thing. Willy Woo, chain expert analyst says that Bitcoin’s recent decline to $21,000 is mainly due to the massive selling by traders.
However, there is no need to press the panic button because the selling is linked to negative net flow on major exchanges which suggests that most of the participants are looking to accumulate or buy the dip to store in their wallets, and take advantage of the price decline.
At the time of writing, the Bitcoin price is at $21,418, down 12% in the past seven days, data from Coingecko shows.
Bearish attitude continues for Bitcoin
There was zero inflow observed in the summer at the main centres. Most traders only increased their liquidity and avoided buying coins at cheap prices.
While traders and investors have maintained a positive attitude and confidence in the Bitcoin price despite the price drop, the dramatic plunge of BTC to $21,000 is a clear illustration of the pain points surrounding the crypto market as a result of the negative issues surrounding Bitcoin and Ethereum.
Willy Woo is considered to be a popular and sought after expert and analyst in Bitcoin and other digital assets. He has a solid cult following of over 1 million on Twitter and a reputable paid newsletter on Substack.
As a crypto analyst, Woo creates content that helps many investors and even those new to crypto understand how crypto markets work.
Bitcoin price has not bottomed out
At this point, it is not certain whether the bearish streak will continue because there is no indication that BTC has bottomed.
With BTC performing a bounce and surpassing the 50-day moving average, the king of cryptos has peaked to new highs following the local correction fueling a rally in both the crypto and stock markets.
Considering the inverse correlation that occurs between assets, it is clear that with the rise in fiat money and stocks, the recovery of the crypto market may take some time.
The spike in the price of the US dollar against other foreign currencies is one of the factors that puts a lot of strain on the crypto market.
As Willy Woo reiterated, the crypto market may return to an extended period of consolidation likely similar to what happened in 2018.
Meanwhile, one of the many advantages that Woo has is that he is one of the early adopters of Bitcoin and other cryptocurrencies, having started crypto investing in 2013, making him a credible on-chain crypto analyst who studies Bitcoin price and economy.
Crypto total market cap at $990 billion on the daily chart | Source: TradingView.com Featured image from Asia Times, Chart from TradingView.com
