A popular on-chain analyst believes that Bitcoin (BTC) is in the process of carving a bottom following the high-profile collapse of FTX.
In a recent interview with crypto analyst Scott Melker, Willy Woo says on-chain signals are telling him that Bitcoin has a lot of buyers at BTC’s current price range even after the implosion of FTX.
According to the analyst, Bitcoin is now trading sideways between a narrow range of $16,000 to $18,000.
“Certainly the indicators I have are showing, when you see a lot of coins moving and the price going sideways, that’s a sure sign of accumulation. And so that’s been happening. I’m tracking it. That’s the reason why it’s going sideways…
The indicators had bottomed. Particularly one [that] I was looking at was really supply that’s underwater. Every single cycle, there’s a trendline. It trends downwards, it trends downwards and when that trendline breaks to the upside, it’s always happened in the middle of an accumulation zone. And it broke in that sideways before the FTX debacle.
So that’s actually my view is that we were setting up for a decent accumulation phase. We’re building that multiple month accumulation bottom. And then, ‘Wham!’ we had another round of deleveraging, but accumulation is still happening. So I think we were setting up for $18,000 to $24,000 sideways band for a few more months. And then we hit that. The deleveraging happened. So now we’re continuing that in the $16,000 to $18,000 band now.”
At time of writing, Bitcoin is changing hands for $17,250, up 1.62% on the day.