One of the most respected analysts in the sector suggested that those expecting another Bitcoin (BTC), speculative price drop are wrong.
Willy Woo, the creator of Woobull on-chain data resource, stated that popular retail exchanges won’t cause a new BTC price rout in a Twitter conversation on December 20.
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Woo and veteran trader Peter Brandt were discussing the chances of new downside. Peter Brandt is a respected commentator who has called Bitcoin’s price bottoms in recent times.
Brandt claimed that the price crashes that are associated with volume spikes have not occurred in December, as opposed to previous episodes. The “real” capitulation phase has yet to take place.
Woo responded that speculative derivatives traders were featured in the cascade up to $41,800 earlier in the month, but retail investors still held BTC. Therefore, volume data from Coinbase and other retail platforms is not a good indicator of an imminent dip.
He wrote, “That’s a Coinbase Chart, sell pressure was from deleveraging in futures markets also more on Asian spot Exchanges.”
A consolidation under weak December liquidity. 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 Thoughts??? pic.twitter.com/dYmDNADxuP
— Peter Brandt (@PeterLBrandt) December 20, 2021
Brandt seemed to accept the nuance.
Open interest creeps higher
Cointelegraph reported that retail traders were buying over the past few weeks as shown by wallets with 1 BTC and less adding to their balances.
Related: Bitcoin falls below $46K after 1 BTC crosses 800K Turkish Lira
Whales are waiting to see what happens next. Bitcoin futures open interest has been steadily rising since the dip.
Chart showing open interest for Bitcoin futures. Source: Coinglass
Grayscale Bitcoin Trust is currently trading at the largest-ever discount to its net asset value.