The last month has been quite challenging for Bitcoin HODLers and crypto-currency enthusiasts in general. There was very little to celebrate – except perhaps that prices did not fall even lower.
So it’s time for positive news, and it’s on time for the master of on-chain analysis, Willy Woo. He says Bitcoin’s on-chain momentum is bullish again.
Woo-hoo! Bullish is good
Woo comes to this explanation in a tweet this morning – along with a chart showing several unnamed wobbly lines. Unfortunately, he does not tell us what the indicator is.
It appears to be the property of Adaptive Capital, Woo’s analytically-led hedge fund project with Murad Mahmudov and David Puell.
All Woo said was that the indicator tracks investor dynamics, presumably by considering a combination of Bitcoin’s on-chain transaction volume and perhaps UTXO’s (unissued transaction results) to analyze the BTC HODLing.
There seem to be at least two sets of indicators, one of which looks like a set of different temporal moving averages.
Bitcoin low is most likely reached
After November, many had their faces covered with their hands, and the cryptosphere was only observed through slits in their fingers. No wonder.
In any case, Woo’s claim that bitcoin soil is more likely than anything else is good mood.
“Everything that is lower will only be a wick in the macro view”
From now on, we head straight to halving, so Woo.
When asked about his confidence in this particular bitcoin prediction, Woo points out:
“I only twitter when I have high self-confidence, otherwise it undermines my reputation.”
During the summer, Woo introduced us to the “Bitcoin Difficulty Ribbon,” which provides a simple metric for comparing multiple moving averages of mining problems on different timescales. This too is beginning to compress – indicating that now is a good time to buy Bitcoin.