Those expecting another Bitcoin (BTC) speculative price dip are looking in the wrong place, one of the industry’s best-known analysts suggested.
In a Twitter discussion on Dec. 20, Willy Woo, creator of on-chain data resource Woobull, said that popular retail exchanges will not spark a further BTC price rout.
U.S. retail stays calm throughout the rout
Brandt argued that volume spikes that accompany price crashes have been absent in December versus previous episodes. As such, the “real” capitulation phase is yet to occur.
Responding, Woo argued that speculative derivatives traders had been featured in the cascade to $41,800 earlier this month, while retail investors continued to hold BTC. As such, volume data from Coinbase or other retail platforms does not serve as a suitable indicator for an imminent dip.
“That’s a Coinbase chart, sell pressure has been from deleveraging on futures markets, also more on Asian spot exchanges,” he wrote.
“Overall no signs yet of an on-chain sell off (HODLers holdling, speculative investors took profits). Effectively a consolidation under weak December liquidity.”
Implications of volume
Key bottoms in $BTC have occurred with high volume panic capitulation
That has (yet???) to happen
— Peter Brandt (@PeterLBrandt) December 20, 2021
Brandt appeared to acknowledge the nuance.
Open interest creeps higher
With whales biding their time, derivatives appear to be regaining confidence, with Bitcoin futures open interest steadily rising since the dip.