Earlier today (March 31), prominent on-chain analyst Willy Woo talked about Bitcoin’s recent price action and where he expects the Bitcoin price to go next.
On Tuesday (March 30), according to data by Bybt, around $778 million worth of long positions got liquidated.
As usual, when traders either get too bearish or too bullish, it is easy for whales to step in, drive the price in the opposite direction to current sentiment, thereby forcing traders using high leverage to get liquidated.
Woo started by commenting on yesterday’s long liquidations:
Yup, and there's the liquidation.
— Willy Woo (@woonomic) March 31, 2021
Someone then asked him how is Bitcoin go to get to the $70K level if every time Bitcoin starts to rally we get long liquidations that push the price down.
Woo replied that it was important to zoom out and recognize that Bitcoin is currently in a consolidation phase and that the Bitcoin price has a very high chance of getting to the $70K level and beyond.
It's going to 70k and then past it with ridiculously high probability. Zoom out, we're just consolidating inside a speculators game.
— Willy Woo (@woonomic) March 31, 2021
Later in the day, William Clemente II, an on-chain analyst who is currently writing for Bitcoin Magazine, also took time to explain how Bitcoin markets work.
#Bitcoin markets are simple:
1) Market is highly leveraged to one side of the trade, a whale steps in and initiates a chain reaction of liquidations ($100M+ this morning)
2) Whale scoops up cheap coins caused by liquidations.
3) Rinse & Repeat (this is why HODL, don’t trade)
— William Clemente III (@WClementeIII) March 31, 2021
The biggest crypto news of the day arrived around 13:00 UTC when CNBC reported that according to Mary Catherine Rich, who was recently named the global head of Digital Assets for Goldman Sachs’ private wealth management division, the bank plans to offer investments in Bitcoin and some other cryptoassets in Q2 2021.
Apparently, she said during an interview this week:
“There’s a contingent of clients who are looking to this asset as a hedge against inflation, and the macro backdrop over the past year has certainly played into that… There are also a large contingent of clients who feel like we’re sitting at the dawn of a new Internet in some ways and are looking for ways to participate in this space.“
She reportedly also said:
“We’re still in the very nascent stages of this ecosystem; no one knows exactly how it will evolve or what shape it will be… But I think it’s fairly safe to expect it will be part of our future.“
"They are of the belief that we are still in the very, very beginning stages of this nascent asset class," says @Hugh_Son on $GS getting in #bitcoin #btc. pic.twitter.com/hZgxmQ2ZYC
— Squawk Box (@SquawkCNBC) March 31, 2021
According to data by CryptoCompare, Bitcoin is currently (as of 19:47 UTC on March 31), trading around $59,338, up 0.71% in the past 24-hour period.
Featured Image by “SnapLaunch” via Pixabay.com
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.