- Willy Woo states that Bitcoin sell-offs are now being absorbed by the market.
- He predicts another month of sideways for the cryptocurrency.
- Bitcoin is currently trading around $57,000, down by 10% in the past seven days.
Crypto analyst Willy Woo believes the Bitcoin market is gradually absorbing the large influx of BTC from recent sell-offs, including those by the German government and Mt. Gox.
This sell-off, which occurred between June 19 and July 5, 2024, saw the German government liquidate 7,583 Bitcoin, worth $435 million at the time. Combined with transactions from Mt. Gox wallets, this contributed to a sharp drop in Bitcoin’s price, pushing it below $56,000 in early July.
Recent data from Glassnode shows that long-term holders (LTHs), those who have held Bitcoin for more than 155 days, now control over 14 million BTC, or 71% of the circulating supply. This significant accumulation by LTHs suggests a strong re-accumulation phase, typically a positive sign for market stability.
The analyst also noted a positive trend in the decline of paper BTC bets, referring to Bitcoin derivatives and futures contracts. He pointed out that the market has shifted from a bearish stance towards a more neutral outlook. Notably, he expects another month of sideways movement for Bitcoin in September.
Meanwhile, Bitcoin is currently trading around the $57,500 level, down by 2% in the last 24 hours. This level extended its weekly losses to over 10.5%. The Crypto Fear and Greed Index currently sits at 26, showing a sense of fear in the market.
The upcoming release of U.S. jobs data this week will be crucial in determining the Federal Reserve’s decision on rate cuts, which could further impact the market. Crypto analyst Rekt Capital also noted that Bitcoin typically breaks out 150-160 days after a halving event. If this pattern is to hold, a major price movement may not occur until the end of September, keeping the market in a strong re-accumulation range for the time being.
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