Embedded in a bearish cycle that lasted for more than a year, bitcoin (BTC) is currently having tremendous difficulty bouncing back above $20,000. The recent fall of the crypto exchange FTX has had the effect of putting further doubt in the minds of investors, whose massive withdrawals of BTC have affected the price of the cryptocurrency.
As the industry desperately searches for signs of recovery in the bitcoin market, some observers believe the situation could worsen. Famous on-chain analyst and bitcoin specialist Willy Woo said he would not be surprised to see BTC sink further.
Reduced to $12,000 or more
In an interview with his colleague Scott Melker, and broadcast on the latter’s YouTube channel on November 30, Willy Woo shared his latest thoughts on the price of bitcoin. In particular, he mentioned the links between the evolution of the cryptocurrency price and the collapse of the FTX ecosystem.
The famous on-chain analyst in particular pointed out that this event had the effect of reducing the price of bitcoin, which some traders took advantage of. He explained that the extent of the damage caused by the fall of FTX made them anticipate BlockFi’s bankruptcy and the effect it would have on the price of bitcoin.
Despite the short return of bitcoin above the $ 17,000 mark after this incident, Willy Woo indicated that the cryptocurrency could turn into more confidence. He specifically stated that he would not be “disturbed” to see it go down to the $12,000 level.
“A $12,000 price tag wouldn’t surprise me. I believe that everyone would want the $10,000 and usually what everyone wants doesn’t happen. So the $12,000 wouldn’t bother me, $12,000 or $13,000. He can escape from there or fall even lower. »
Also read: Bitcoin and Altcoins Recovery from FTX Collapse
Despite this bearish view, Willy Woo declared that bitcoin is currently in an accumulation phase. He also confirmed that this is responsible for the low volatility of the cryptocurrency price, before specifying that this phenomenon has already been observed during the 2018 and 2015 cycles.