Those who expect another bitcoin (BTC) speculative price losses are looking in the wrong place, says one of the most well-known analysts in the industry.
In a Twitter discussion on December 20, Willy Woo, creator of on-chain data resource Woobull, said popular retail exchanges will not cause any further BTC price drops.
US retail remains calm throughout the route
Woo discussed the chances of a new downside with veteran trader Peter Brandt, a commentator adored for seeing Bitcoin price lows in recent years.
Brandt argued that there were no volume spikes in December from previous episodes that accompanied price drops. The “real” surrender phase is still pending.
In response, Woo argued that speculative derivatives traders were in the Cascade to $ 41,800 Earlier this month, while retail investors continued to hold BTC. As such, volume data from Coinbase or other trading platforms does not serve as a suitable indicator of an impending slump.
“This is a Coinbase chart, the selling pressure arose from the deleveraging on the futures markets, and more so on the Asian spot exchanges,” he wrote.
“Overall, there are still no signs of a sell-off in the chain (hold HODLers, speculative investors took profits). Effectively a consolidation with weak December liquidity.”
Effects of volume
Key bases in $ BTC appeared with great panic surrender
That (still ???) has to happen
Thoughts??? pic.twitter.com/dYmDNADxuP
– Peter Brandt (@PeterLBrandt) December 20, 2021
Brandt seemed to recognize the nuance.
Open interest is creeping up
As Cointelegraph reported, Meanwhile, retailers have been buying in the past few weeks how wallets add 1 BTC or less to their balance.
Related: Bitcoin wobbles below $ 46,000 as 1 BTC crosses 800,000 Turkish Lira for the first time
As the whales bide their time, derivatives seem to be regaining confidence, with Bitcoin futures open interest steadily increasing since diving.
Open Interest Chart for Bitcoin Futures. Source: Coinglass
Meanwhile, the Grayscale Bitcoin Trust is trading on its biggest discount ever at net asset value in this week’s history.
