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Bitcoin’s huge discount isn’t just enticing whales; it’s also attracting consumers who have never owned the virtual currency before.
According to famous cryptocurrency analyst Willy Woo, on-chain measurements indicate that Bitcoin’s (BTC) bull market is still intact as so-called “no-coiners” purchase the fall.
Woo said in a series of tweets on Monday that the recent price reversal 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 was pointing to a Glassnode map depicting the growth of nett individuals on the Bitcoin network.
Bitcoin’s 2013 span featured not one, but two mania tops separated by a huge 83 percent correction. Following the most recent 54 percent drop, some observers have argued that Bitcoin could be following a similar trend to 2013.That dump was unlike anything we saw during the 2017 bull market that witnessed six price corrections of between 29% and 38%.
The orchestrated selloff last week allowed institutions and other whales to purchase more BTC at discounted rates. According to Cointelegraph, Bitcoin whales amassed over 122,500 BTC during the May 19 price crash. As shown by the large BTC premium on Coinbase, most of the purchase came from US and other Western investors.
According to TradingView info, the price of bitcoin reached $38,800 on Monday. It was last seen floating just above $37,500, representing an 8 percent daily rise. The largest cryptocurrency by market capitalisation fell to a low of $31,000 on Sunday before rebounding.
The overall cryptocurrency market rallied more than 19% on Monday, with the major large-cap altcoins reporting gains of 15% ore more.