On-chain metrics suggest Bitcoin’s (BTC) bull market is very much intact as so-called “no-coiners” buy the dip, according to popular cryptocurrency analyst Willy Woo.
In a series of tweets on Monday, Woo said the latest price correction for Bitcoin and altcoins mirrored the Covid-19 “white swan” event that allowed money on the sidelines to enter the market at discount rates. That means the market uptrend that began in October 2020 has yet to be broken, which should negate any speculation that the current four-year cycle is playing out like a “2013 double pump.”
BTW a key observation here is that this is not looking like a 2013 double pump. It's so far it's structurally playing out like a COVID white swan where people on the sidelines took the opportunity to come in. (Other on-chain charts point to the same structure too) https://t.co/Pt4dcKchQ4
— Willy Woo (@woonomic) May 24, 2021
“No-coiners are taking this opportunity to buy the dip,” Woo said, referring to a chart by Glassnode showing the rise in net entities on the Bitcoin blockchain.
Bitcoin’s 2013 cycle was marked by not one, but two mania tops that were separated by a massive 83% correction. Several analysts have speculated that Bitcoin could be charting a similar pattern as 2013 following the most recent 54% dump. That dump was unlike anything we saw during the 2017 bull market that witnessed six price corrections of between 29% and 38%.
Last week’s coordinated selloff allowed institutions and other whales to accumulate more BTC at discount rates. As Cointelegraph recently reported, Bitcoin whales accumulated over 122,500 BTC during May 19 price crash. Much of that buying came from U.S. and other Western investors, as evidenced by the larg BTC premium on Coinbase.
Bitcoin price traded as high as $38,800 on Monday, according to TradingView data. It was last seen hovering just above $37,500 for a daily gain of 8%. The largest cryptocurrency by market cap dipped to a low near $31,000 on Sunday before staging a rebound.
The overall cryptocurrency market rallied more than 19% on Monday, with the major large-cap altcoins reporting gains of 15% ore more.