Analyst Reply: What Caused the Last Rally?
The popular cryptocurrency analyst known as Willy Woo shared an important detail with his 1 million followers. What everyone was wondering was who or who started the last big rally. Bitcoin price, which has been rising continuously for about 3 weeks, liquidated its huge short positions. More importantly, it has resulted in gains of over 300% in many altcoins. Woo, one of the most followed names in crypto, said the following;
“This recent rally coins with a new pattern emerging of stablecoins flowing into exchanges during work days only. Seems to me like the heat signature of large institutions doing the buying.”
“Timing of the inflows spans approximately 16hrs, with the quiet zone being Asian work hours. This suggest it’s Western institutions across US and Europe.”
The famous crypto analyst says that since the beginning of this rally, purchases in the spot markets have dominated the derivatives markets. In other words, the main driving force that moves the price is spot purchases, we have seen in the past that excessive short selling on the derivative side pushes the price down continuously. This reversal is important for the uptrend in the markets. Willy Woo believes this shift is the business of long-term institutional investors. According to him, they make spot purchases and then start hiding their assets.
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