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 ” strong hands with minimal history of selling.” 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:
Anyone selling right now is cray-cray. Seriously strong long term holders are buying this dip.
However, some Twitter users reacting to Woo’s post like Twitter user “Phive26,” 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:
“We 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?”