- Glassnode says that a huge number of Bitcoins are being taken out from the centralised exchanges
- Bitcoin Spent Output Profit Ratio (SOPR) is a clear indicator of investors taking profit on their unrealised profits
Bitcoin have surged past $15,000, highest in this year and it is expected to reach $17,000 within the end of 2020. Willy Woo, the on-chain analyst, said that the Bitcoin will not experience a blow-off top. He strongly supports this concept with three main reasons. It includes increasing outflow of funds from the exchange, increasing numbers in HODLers, data of investor’s profit. Here the blow-off refers to the declining price of an asset after reaching a top level.
Growing outflow of funds from exchanges
A data from the Glassnode says that a huge number of Bitcoins are being taken out from the centralised exchanges. This data was in particular to October. Woo sees this as a positive plan of investors, who move their funds from echanges to their individual personal wallets. This clearly shows that the investors are planning to hold the Bitcoins with a long-time investment strategy. He also added that in the past five years, this is the highest number of Bitcoins being scooped up from the trade platforms in a single day.
Increasing number of HODLers
HODLers are the ones, who usually hold BTC in the digital asset market. They will hold the Bitcoins for a very long period of time, even more than a year. Willy Woo says that before to this pump of BTC, the number of HODLers in the cryptocurrency market went on increasing, reaching the highest ever. The last achieved was in October, 2017, before a month of Bitcoin’s mania phase. He considers this increasing numbers in HODLers are extremely encourageable, as this shows the demand of retail behind the peak.
Data on the investor’s profit
He also considers the data of the profits received by the investors. According to him, the Bitcoin Spent Output Profit Ratio (SOPR) is a clear indicator of investors taking profit on their unrealised profits. Also, data from Glassnode in the last week reveals that many capitalists had profit. Since the capitalists understand the profits of the coins, the warning of profit-taking pullback will be lower, says Woo.
Thus with the above-mentioned three points, he strongly supported that BTC will not experience the blow-top. At least for now, such analysts have given some consolidation but not a deep correction.