• Willy Woo, an on-chain analyst, believes there is no reason to be bearish on Bitcoin right now

  • According to popular on-chain analyst Willy Woo, a few key factors indicate that there is no reason to be bearish on BTC.

    Woo claims in a new interview that, aside from not being in a bear market, Bitcoin may have broken free from its traditional four-year cycle of price tops and bottoms.

    “I believe a few people became overly bearish, but there is no reason to be overly bearish. What real investors are doing structurally on-chain [indicates] that we have never been in a bear market, more like a little bit of a bear market within a larger macro setup.

    In my opinion, this is not a cycle. I don’t believe we’ll top and have another four-year revolution followed by a one-year bear market. That does not appear to be the case.”

    Woo goes on to say that recent macroeconomic news, such as China’s Evergrande mortgage crisis and the Federal Reserve’s consideration of tapering its purchases of securities and bonds, have put pressure on all investment classes.

    “Over the weekend, [the S&P 500] began to look very weak and sold off. Bitcoin has also begun to fall in value. So it was simply selling off in response to the S&P 500, where there was nothing but spot buying.”

    According to Woo, there is a new class of buy-and-hold investors in the Bitcoin market, which bodes well for BTC’s long-term value.

    “Bitcoin is developing. With the addition of large institutions, it is attracting much larger players. This week has been dominated by investor purchases. They’re buying on the exchanges, scooping it up, and putting it in cold storage.”

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