The crypto market is suffering another strong correction today, with Bitcoin trading around $43k.
Here’s what crypto analyst Willy Woo said on Twitter.
SPX teetering, threatening a large sell-off. BTC carving out a Wycoffian distribution pattern, speculators selling down in risk-off mode, meanwhile investors on-chain have been in strong accumulation.
It’s going to be an interesting opening to this morning’s equities market.
— Willy Woo (@woonomic) September 20, 2021
He continued and said: “The last significant equities crash we saw was COVID19, BTC also showed strong accumulation during that time. I remember everyone saying BTC was a failed uncorrelated asset and safehaven. That was until the supply squeeze from that accumulation took hold later in the year.”
When someone asked: “Do you really believe that you compare the 2 similar scenarios? (halving cycle, price of BTC, asset purchases, retailers to flush, price range)? There cant be black swan effect again, If you already expecting this.”
Woo responded with: “It’s simply deleveraging. When the market is in fear, positions are sold off into USD in a flight to safety. Then positions are redeployed after the new environment is factored in. That dynamic doesn’t change. So yes the market reaction can be compared.”
Bitcoin confirmed rare bull signal
Crypto trader Lark Davis said that BTC confirmed a massive bullish signal.
It’s been revealed that Bitcoin just flashed “golden cross,” a technical event seen by many traders as a sign for rallies to come.
“It’s happened. It’s official. It is confirmed. We’ve got a golden cross on Bitcoin. That is, of course, the crossing over of the 50-day moving average of the 200-day moving average. This is definitely nice to see.”
At the moment of writing this article, BTC is trading in the red, and the king coin is priced at $43,517.35.
Stay tuned for more news.