Popular on-chain analyst Willy Woo explains the critical factors that keep Bitcoin (BTC) from moving upwards and hitting all-time highs.
In a recent Coin Stories interview, Woo said he’s looking at a specific on-chain metric that tells him Bitcoin isn’t ready to rally yet. Woo also mentioned that Bitcoin ETFs are also blocking the rise.
The major factor delaying BTC’s transition to higher prices is the emergence of Bitcoin futures exchange-traded funds (ETFs). According to the on-chain analyst, Bitcoin ETFs are leading investors to enter derivative contracts instead of buying BTC.
“With the approval of ETFs, we have made many changes. These ETFs are based on futures. They don’t actually buy Bitcoin. They actually buy futures contracts to take advantage of the price. ”
Woo also said he was looking at an on-chain metric:
“Looking at where we stand in terms of what I call supply shock, I’d say it’s the ratio of money held by really strong holders to more speculative hands. We are not at the rate we see. First and second quarter before May. We are actually climbing there, but not at the levels where we last touched the $64,000 range. Structurally, you could say that we are not in an uptrend on the chain. ”
Finally, Woo says that the greed and enthusiasm surrounding the Bitcoin market has contributed to BTC’s stagnant rise.
“The other thing is that everyone is very, very bullish right now and whenever everyone is bullish, it is very difficult for the price to go up because you take a lot of speculative long positions in the markets. ”
