Who Led To Bitcoin’s Drop $21,000? Willy Woo Describes

Willy Woo, an on-chain expert, released data that indicated that the sell-off on the 3AC scale by institutional traders was mostly responsible for Bitcoin’s decline to $21,000. Despite this, there is some good news.

According to the analyst, this sell-off was associated with a negative net flow of coins on exchanges, which could indicate that the bulk of market participants have switched into accumulation “mode” and were aggressively purchasing cheap coins to store in their cold wallets throughout the decline.

We did not observe any inflows from centralized exchanges at the beginning of this summer because traders were primarily supplying extra liquidity for funding their short positions and were not aggressively purchasing any coins at their absolute lows.

Despite the positive news surrounding the net flow of Bitcoin on exchanges

The recent increase to $21,000 is a sign of the issues with the cryptocurrency market brought on by the unfavorable macroeconomic environment for risky assets like Bitcoin or Ethereum.

Sadly, there have been no signs that would indicate BTC has touched the bottom, thus it is still unclear if the bear rally will continue.

One of the primary sources of pressure on the market for digital assets is the U.S. Dollar’s advance against a group of foreign currencies, as we have frequently noted in our past articles.

After the regional downturn that sparked a rally on the stock and digital asset markets, DXY successfully bounced off the 50-day moving average to reach new highs. Given the inverse correlation between assets, it is obvious that a significant recovery in the price of cryptocurrencies is unlikely to occur given the present cycle of rate hikes.

The cryptocurrency market may experience a protracted consolidation similar to what we experienced in 2018 as Willy Woo himself predicted.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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