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Renowned on-chain crypto analyst Willy Woo has recently suggested that Bitcoin (BTC) is about to embark on a big move, as certain metrics point towards a re-accumulation phase for the leading cryptocurrency. Woo took to Twitter to share his insights with his one million followers, where he explained that BTC’s cost-basis analysis could indicate that the re-accumulation phase has already begun.
In his analysis, Woo compared the cost basis of long-term holders (LTHs), or those who have held onto Bitcoin for at least 155 days, with short-term holders (STHs). The data showed that STHs currently have a lower cost basis than LTHs, suggesting that Bitcoin has already established a bear market bottom in recent months and is poised to enter a new phase. According to Woo, this indicates that “bottoms are signaled when short-term holders (recent buyers) got in cheaper than long-term holders. We are now moving out of this regime.”
Woo went on to note that April would be an interesting month to watch for BTC, as sellers are currently absent until $40,000. He also pointed out that orderbook liquidity is thinning out, creating a big liquidity gap from current levels to $40,000, which could lead to volatility ramping up in the near future.
The analyst also highlighted that Bitcoin’s price stability is forming a peak, which could potentially be a prelude to a big move. Woo said that this typically happens within a week, indicating that BTC could be about to experience a significant price shift.
Overall, Woo’s analysis points towards a positive outlook for Bitcoin, as the cost-basis analysis suggests that the re-accumulation phase has begun, and various other metrics hint towards a potential big move in the near future. As always, cryptocurrency markets are unpredictable, but Woo’s insights provide valuable information for traders and investors looking to stay ahead of the game.
