On-chain analyst Willy Woo claims that Bitcoin (BTC) is seeing historically unprecedented demand in the spot market despite the disappointing price action that has unfolded over the past few weeks.
The popular analyst tells his one million Twitter followers that institutional capital is flowing into Bitcoin as BTC’s price action emulates late 2020, just before crypto markets stage massive rallies.
“Bitcoin price is sideways because Wall St is selling a futures contract in a macro risk trade. Meanwhile, institutional money is picking up spot BTC at peak rates and moving into cold storage.
It’s times like these that I remember the supply squeeze in the fourth quarter of 2020.”
According to Woo, investors may already view BTC as a legitimate safe-haven asset class given Bitcoin’s ability to avoid a complete collapse in the face of a sharp stock market correction.
“BTC price is holding up well as stocks tumble and the USD moons index is evidence of the unprecedented spot buying that is happening right now.
In other words: investors already see BTC as a safe haven. It will take time for the price to reflect. Wait until futures sell out of ammunition.
Short term, Woo said Bitcoin is facing headwinds due to macroeconomic factors. However, he notes that the US Dollar Index (DXY) is at a critical resistance level, which could lead to a rejection that could help Bitcoin and other assets spark rallies.
Woo also points out to veteran commodities trader Peter Brandt that the TD Sequential (Tom DeMark), an indicator that attempts to identify trend reversal points, has sent a major bearish reversal signal for DXY.
When the TD sequence registers nine consecutive candles above the close of the previous four candles, it prints a TD9 signal. Woo says the DXY has officially flashed a TD9, which could have big implications for Bitcoin and other assets in the near future.
TD9 reversal on monthly and weekly candles. Will be interesting to see what happens next week.
— Willy Woo (@woonomic) April 28, 2022
At the time of writing, Bitcoin is trading at $38,117.
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