The economic analyst Willy Woo, affirmed that the decrease in the price of bitcoin during this week could have been due to a wrong information disseminated by the blockchain analysis firm Glassnode.
Last Monday 22 February, after a transfer of 40,000 BTC, equivalent to USD 1,500 million, the price of bitcoin (BTC) began to fall.
This transfer of funds was accounted for by the firm Glassnode as a Increase in bitcoin deposits in exchange houses, which would imply the imminent pressure to sell bitcoins and as a consequence, the decrease in their price.
But in reality, Woo pointed out, it was about a simple internal funds transfer on the Gemini exchange, as confirmed by Glassnode’s chief of technology operations (CTO), Rafael Schultze-Kraft.
In the podcast ‘ What Bitcoin Did ‘Woo claimed that the increase in sales volume in the world’s leading Bitcoin exchanges , as well as the consequent drop in prices, could be motivated by unreliable information.
I tried to understand this large volume of sales and the truth, the sales peak started when we received an alert about a transfer to exchanges of USD 1.5 billion in bitcoins ready to be sold. The presumption was that they were about to be sold, so I think the traders began to sell early at what they warned.
I spoke with the CTO from Glassnode to confirm the veracity of this information, and it seems that there was an error where they miscategorized a wallet and it was only an internal movement of bitcoins within the Gemini house.
Willy Woo, Bitcoin analyst.
The analysis error may have influenced the decisions of investors, who may have rushed to close their positions and sell their bitcoins, wrongly interpreting that a whale ( whale ) or large investor was preparing to do the same.
The specialized medium Coindesk was one of the portals that on Monday, February 22, published the Glassnode data relating the report to the possible selling pressure of bitcoin, which was trading at $ 56,000 at the time.
The rest of the week, the price of bitcoin fell by at least USD 10,000, as reported by CriptoNoticias, ranking at this time in USD 46,000, according to the price calculator of this media.
The price of bitcoin will not be so cheap again
Woo, who is a long-time Bitcoin analyst, also considered that after a sustained rise driven by institutional investment and recognition of cryptocurrency by more and more people and entities, the price of Bitcoin may have lost acceleration. However, it places its resistance line or bottom at USD 35,000, according to its analysis.
Before the recent decline in prices this week, Woo had predicted that the price of BTC would reach USD 63,000 at the end of February, according to CriptoNoticias, but the momentum motivated by large investments stopped this Monday.
Along with Peter McCormack, moderator of the podcast specialized in Bitcoin, Woo stated that, while In the previous important bear market ( bear market ), the price fell from the historical maximum of that time, USD 20,000, to USD 3,000, this time it does not expect that the next bear market has a decline in similar proportions. In his opinion, the price of bitcoin will have increasingly stronger resistance and projected upwards.
On the other hand, he points out that While at some point investors could liquidate their bitcoins and the price could vary substantially, there seems to be a clear trend towards hodl or long-term savings.
For Woo, it is not clear when this trend could be reversed , but he points out that through various loan and financing services in bitcoins such as BlockFi or Ledn, mentioned by McCormack, investors could devise strategies that allow to make high-yield investments without getting rid of their bitcoins , although depending on the strategy followed, this could lead to losses.
A recent study indicates that more than 400,000 BTC are being used as collateral in platforms that provide loan services.
Regarding this comment , could ref There is a report that Glassnode published this week detailing the accumulation of bitcoins by the so-called ‘whales’, the big investors in the market, as a growing trend, instead of getting rid of their funds.