Willy Woo, an on-chain analyst, recently shared. The main topic in the analyst’s share was the recent fall of Bitcoin (BTC). Here are Woo’s tweet and the details of the market drop…
Willy Woo draws attention to the flow of Bitcoin on exchanges
Willy Woo, one of the famous analysts, commented on the latest price change in the Bitcoin market. According to the data shared by the analyst, it was mostly institutional traders that caused Bitcoin to drop to $ 21,000. In other words, the expert says that large-scale investors are selling behind the decline. However, there is a positive side to this job, according to Woo. As the analyst suggested, this sell-off was due to negative net coin flow on exchanges. This indicates that most market participants have entered the accumulation “mode”. Apart from that, it may indicate that they are actively buying coins from the bottom to store in their cold wallets.
USD strength (DXY) was the giveaway to this last risk off move which took BTC and equities 3-4 days to reflect.
The sell-off by institutional traders was of the scale we saw in the 3AC unwind, however this time coins flowed off exchanges signifying accumulation is in play.
— Willy Woo (@woonomic) August 20, 2022
The recent bearish movement points to the impact of the negative macro environment for risky assets like Bitcoin or Ethereum. Keza Woo also stated that there was a decrease as the strength of the US Dollar Index (DX) affected BTC and shares within 3-4 days. That is, it is a manifestation of problems in the cryptocurrency market caused by macroeconomic factors. Meanwhile, investors are wondering if BTC has bottomed out. Because many people make their investments accordingly. According to some experts, it is not yet clear whether the bear rally will continue as there are no signals to indicate that BTC has bottomed. But according to some, the bear cycle is over.
What is the latest situation in the market?
cryptocoin.com As we reported, Bitcoin marked new multi-month highs last weekend. It even attempted to break above $25,000 twice. The bulls were expected to remain in control and perhaps continue to push the asset up. However, the landscape immediately changed, with BTC dropping over $1,000 within hours. But this was just the beginning. Bitcoin has attempted a brief recovery. However, it was stalled at $24,400 and lost $1,000 again in the following hours. When BTC dropped to $21,500 a few days later, more pain came to the market.
Yesterday, we had another price drop that brought the asset down to a three-week low of $20,800. BTC tried to recover some ground but fell to that level in the following hours. As of now, BTC stands at around $21,000. That’s roughly 15 percent down on the week. It also means that its market cap is close to falling below $400 billion.
In BTC’s volatile moments, altcoins tend to go a step further. Ethereum was among the top performing cryptos until the end of last week. Fueled by the hype about Merge, ETH soared above its 74-day high of $2,050. Now, the second-largest crypto is struggling at $1,550 after several consecutive days of price drops. This means that ETH lost $500 in one week. On a daily scale, Ripple, Cardano, Solana, Dogecoin, Polkadot, Shiba Inu, Avalanche and Tron are also in red.
