After setting a new all-time high (ATH) of $61,699 on March 13, bitcoin dropped to $53,300 on March 23, a decline of more than 14% in just ten days. However, following this latest drop, onchain analyst Willy Woo speculates that another institutional investor could be buying the dip.
Strong Hands Accumulating
In his tweet on March 23, Woo uses two charts to support his assertion, that the large volumes of coins that are being removed from exchanges, are in fact flowing to â€ strong hands with minimal history of selling.â€ However, it is the involvement of Coinbase, which has facilitated large BTC acquisitions by U.S. entities in past, that has convinced Woo that a yet-to-be-announced institution is currently buying.
Consequently, in his warning to holders currently selling, Woo tweeted:
However, some Twitter users reacting to Wooâ€™s post like Twitter user â€œPhive26,â€ are unconvinced with his predictions, while others have questioned the data that is used to arrive at the conclusion that an institution is currently buying. In his tweet, Phive26 said:
â€œWe have seen several times people mistaking internal transfers of crypto for withdrawals. How do you ensure not to bring internal transfers into your withdrawal data?â€
Not the Right Time to Sell
Meanwhile, other Twitter users are in agreement with Wooâ€™s assertion that the aggressive drop in the coins on exchanges is a signal that institutions are buying. For instance, a user named â€œWages of Freedomâ€ said:
Similarly, another user, â€œExonumiaâ€ agreed with Wooâ€™s warning to holders. He tweeted:
â€œSell for what? Exchange the hardest asset on earth for dollars which are inflating this at 20% per year? That makes zero sense. There is no need to sell bitcoin. Itâ€™s the perfect collateral asset and SOV.â€ The price of bitcoin (BTC) jumped 3% higher after Tesla and Elon Musk revealed the electric car company will now accept BTC payments.
Do you agree with Wooâ€™s argument that an institution is currently buying the dip? You can share your thoughts in the comments section below.
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