Hi everyone,
Today I would like to talk about Bitcoin and breaking the 10K mark. This is bullish news and apparently on-chain fundamental investor activity is showing that this move above 10K is real and not some fake-out. If you look at the volume these last days it is not very high so a lot of people might wonder and maybe show videos that this move above 10K for BTC is kind of fishy or suspicious, but this is not the case. I will show you here a graph that proves that fundamentally we are doing great :
This graph is from Willy Woo and he is an amazing guy who does all kind of on-chain analyses. The lower chart will show you people that buy and hold BTC, not people that trade short term. You can see all the lines moving to the upside (on the right) and we are moving above 10K. This means a lot of people are buying and holding BTC for longer term. The blue line above is the BTC price. You can see on the left, when we went to 14K, that the on-chain investor activity was going to the downside and this precedes the price. On the right you see investor activity preceding price once again, but this time to the upside. Willy Woo was already in December 2019 predicting prices to start moving in January 2020, because of the on-chain activity he follows. Apparently price follows some weeks (3 to 6 weeks) after the on-chain investor activity turns bullish and this was clearly the case.
This is amazing news for BTC, but do not think blindly that Bitcoin is just going to keep on moving up and up. In a bull market you will see quite some pullbacks that are fast and nasty which will shake out people. This can easily happen in the next weeks since we have been moving pretty fast from 6400 to 10000 (healthy rise by the way !). Prices are kind of overbought and indicators like RSI tend to need a resetting before we can move on. This will not change the on-chain investor activity since it clearly shows an uptrend and people are willing to hold on to their BTC, which means that at some point supply will fall down. We can easily pull back 10/20% and this would be a good time to buy the dip !
If you want to follow on-chain analyses from Willy Woo you can check out his website https://charts.woobull.com/ .
This is not financial advice and I am not a financial adviser. Please do your own research and make your own decisions.
