Last Updated: 1 August 2022
Willy Woo is known in the industry as one of the best and most experienced on-chain analysts. Now he has shared an interesting chart from his private collection via Twitter, which seems to indicate that we have now passed the bottom of the bear market.
Accumulation phase started
The chart below clearly shows that bitcoin has entered a new accumulation phase. Something that was accompanied by a bottom during past bear markets. In 2012, 2015, and 2018, bitcoin made a bottom during the accumulation phase.
In that respect, this is a hopeful chart that Willy Woo also brings in this way. “Use it as you see fit to time the bottom,” Woo said of his chart.
After the collapse of Luna and the bankruptcies of Voyager Digital, Three Arrows Capital, and Celsius, the rescue of BlockFi, the selling of Tesla and terrible macroeconomic conditions, the worst seems to be behind us for bitcoin.
Not everyone agrees with Woo
Not everyone agrees with Woo, who in the past even stopped his paid newsletter because he felt his analyses were not worth the money.
Amazing. Can I keep paying you $50 a month to tell me Bitcoin is going to $325k in 2021 again?
— Bitcoin Lives (@Bitcoin_Lives) July 30, 2022
Others feel that we have not yet undergone an actual “capitulation.” Before we reach a bottom, they say, we must go through another phase of pure panic. That may be, everything is open in that respect.
For now, however, it seems that bitcoin has bottomed, plus the fact that we are already trading about 35 percent above the local bottom of 17,600. It looks like we would need a lot of bad news to dip below that.
That bad news could come from the macro side of the big picture. If central banks do not get inflation under control, we may well be in for some more rate hikes and that is not good for bitcoin.