Bitcoin is racing towards $41k as we speak. At the moment of writing this article, BTC is trading in the green, and the king coin is priced at $40,978.13.
It’s been revealed that on-chain analyst Willy Woo says that Bitcoin (BTC) has entered a period of “maximum noobishness.”
New BTC is moving
Woo told Scott Melker in a new interview that BTC is now in a zone where the “smart money” has essentially stopped selling.
The coins that are currently moving among investors are “young” assets that were recently acquired, said Woo.
The analyst is relying on a metric called “cumulative value-days destroyed” (CVDD), also known as “destruction.”
He says that destruction is a ratio that expresses the duration of a held asset to the age of the market.
Woo also said that he sees bullish signs when destruction bottoms and young coins are rampant.
“You can look at the age of the coins moving per volume, moving between investors. And whenever it reaches a low of destruction, meaning those coins that are moving between investors are young, that means the sellers are newbs,” he said.
He continued and said: “We’re at maximum noobishness and whenever that bottoms, that’s a time to buy. And it’s just bottomed in this last week. We’re at max noob selling and the OGs are not selling. They’re buying.”
The analyst also pointed to Bitcoin’s massive network growth as a potential sign of strength.
He also explained: “I’m talking about parabolic on a log chart like we’re used to. Normally it grows and then the growth rate starts to taper off. For the last three years the growth rate has been going parabolic. Never been seen before.”