Bitcoin Reached Bottom, But Could Move to $12,000 if This Happens

December 6, 2022

Following the high-profile collapse of FTX, on-chain analyst Willy Woo believes Bitcoin (BTC) is in the midst of carving a bottom.

In a recent talk with Scott Melker, also known as the ‘Wolf of all Streets’, that aired December 1 on YouTube, Woo highlights that on-chain indications indicate that Bitcoin has a lot of buyers at its current price level, even after the crash of FTX.

Woo said that a new bottom seems to have formed as Bitcoin is now trading sideways between $16,000 and $18,000, and we can expect the faithful to buy more coins.

So that’s actually my view is that we were setting up for a decent accumulation phase. We’re building that multiple month accumulation bottom. And then, ‘Wham!’ we had another round of deleveraging… But accumulation is still happening. So I think we were setting up for $18,000 to $24,000 sideways band for a few more months. And then we hit that. The deleveraging happened. So now we’re continuing that in the $16,000 to $18,000 band now.”

The two discussed if Bitcoin could drop even further, perhaps to $10,ooo or $12,000 and what would have to happen. Woo said:

“Twelve wouldn’t shock me, twelve, fourteen…If Binance collapses yeah.. Holy shit.”

Nevertheless this seems unlikely to the analyst who said that with FTX there were clear on chain indicators something was not right:

“FTX is where I traded myself… I gotta hand it to SBF [Bankman-Fried]… He stole a lot of money, but the exchange itself… He built a good product.”

“He got greedy,” Woo said about the debacle and the seven days that rocked the crypto world. Prior to everyone getting their funds off FTX, he noted while displaying a Glassnode graph, there were already some suspicious transfers wallet to wallet, with constant downward trend of BTC moving away from the trading platform. With the knowledge we have now, Woo confirmed Melker’s comment that this has been coins moving to Alameda and prevent a blow-up which eventually happened.

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Author: Peter Siu

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