Despite Bitcoin’s Plunge There Are no Signs of Incoming Selloff Cascade: Willy Woo

Bitcoin prices fell to below $46,000 on Tuesday morning’s Asian trading session. To prevent another devastating decline, the asset is now supported by the 200-day moving mean.

BTC has fallen around 30% since its Nov. 10 high, but this is not the biggest retracement of the entire year. Prices corrected by 54% between April and July before the bullish momentum returned.

Willy Woo, an on-chain analyst, has created a heatmap that depicts dip-buying. He said that it had been occurring, it’s mild, but there is no sign of another sell-off cascade.

Blockstream CEO Adam Back, Cryptographer, and Blockstream CEO, added his voice to the sentiment, stating, “can verify – been BTFD as usual, since liquidation cascade.” This is a nice base with lower leverage to continue building on.”

Visualizing the purchase of the dip (spot volumes visible on-chain). It’s been happening, it’s mild, but the most important thing is that there are no signs of another sell-off cascade. It is also worth noting that longs have been flushed.

— Willy Woo (@woonomic), December 13, 2021

OI Signals Flush Out

Open interest (OI) is another indicator that leveraged long positions are being wiped out. This indicator shows the number of outstanding derivative contracts still un settled. In the last few years, Bitcoin’s volatility has been largely due to rapid slumps and derivatives markets.

Long positions that are too leveraged can be liquidated quickly. This causes cascade sell-offs, which results in price drops of thousands within a short period. This was exactly what happened in April’s ATH, and again in September.

Glassnode is an on-chain analytics provider that has looked into OI and found that it fuels futures-driven volatility when it’s high. OI has dropped by approximately 50K BTC over the past week (roughly $2.5 Billion).

According to the company, funding rates (which are payments made between short and long positions on perpetual futures market platforms) are currently only marginally positive and are not rising.

“This further supports the conclusion that the majority of excessive leverage in the market has been removed.”

How to Buy The Bitcoin Dip

Peter Schiff, a Bitcoin detractor, said that prices could reach $100K once. He couldn’t resist taking a look as he does each time asset prices fall. He asked the top BTC bulls whether they were considering buying the dip.

Are you guys ready to buy this dip? Are you waiting for a bigger drop to buy more? @saylor, @APompliano and @PeterMcCormack are my examples. My son @SpencerKSchiff seems to be all in on #Bitcoin.

— Peter Schiff (@PeterSchiff), December 13, 2021

Many people thanked him for the tip, as tweets are usually at the bottom of the dip. This confirms that they did indeed buy more.

The next few days will determine the next move. There could be a bigger drop to buy if support is lost.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the””  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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