- Willy Woo attributes the latest pullback in Bitcoin to a large Over the Counter sale, denies selling by large wallet investors.
- The current Bitcoin correction has seen capitulation by dip buyers.
- Proponents claim that if new buyers inject capital in Bitcoin, the asset could break above key resistance and set a new all-time high in 2021.
As new buyers line up on exchanges to buy the Bitcoin dip, analysts expect the asset to retest the $55,000 level.
Whales continue accumulating through the cascading liquidation, bullish on BTC
Willy Woo, a Bitcoin on-chain analyst argues that contrary to common belief, the recent correction in BTC was not triggered by large wallet investors selling their holdings.
Instead, whales have been significantly buying BTC, increasing their holdings throughout the drop.
Contrary to common opinion, that latest price pull back was not from whale selling. They've been in a significant region of buying. pic.twitter.com/RFZe6LRG6t
— Willy Woo (@woonomic) September 11, 2021
Historically, when large wallet investors increase their holdings and accumulate BTC, a price rally follows. According to Woo, a large Over the Counter (OTC) sale was broken up and distributed across spot markets, triggering a pullback that caused the cascading liquidations.
Analysts expect a potentially volatile period ahead for Bitcoin, as nearly 336,000 traders positions were liquidated in Tuesday’s crash.
Alex Mashinsky, the CEO of the Celsius Network is of the opinion that new buyers entering the market are likely to push the asset past the key resistance zone at $55,000, to set a new high in 2021.
Mashinsky says,
I am still holding my projections that we will be hitting the $140,000 to $160,000 levels. It might take us into Q1 [first quarter] of next year because of this kind of flash crash and clean-up we have seen with the Chinese miners. But it’s definitely going higher.
According to pseudonymous analyst @DaanCrypto, BTC is at an important level to watch. If Bitcoin holds the current price level, the analyst expects an extended rally in 2021.
$BTC When the bull market support band (20W SMA & 21W EMA) is held as support, this usually ends up in a big rally.
— Daan Crypto Trades (@DaanCrypto) September 11, 2021
Being below and rejecting often leads to more downside.
We're holding it for now. It's an important level to watch.
Trade here: https://t.co/VZNADvrnZu pic.twitter.com/Zd5NaF9THr
FXStreet analysts expect Bitcoin to continue upward climb and target the $57,000 level next.
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