Popular on-chain analyst Willy Woo is updating his outlook on Bitcoin (BTC) as he suggests the market is becoming less bearish.
Woo tells his 1.1 million followers on the social media platform X that the market seems to be absorbing the recent massive amount of Bitcoin sent to exchanges by the German government, the U.S. Department of Justice (DOJ) and the failed crypto exchange Mt. Gox for the purpose of unloading the digital asset.
He looks at the amount of Bitcoin supply available on crypto exchanges, which is starting to decline after a sharp rise.
At the same time, he says there is a decline in “paper BTC,” or futures and derivatives contracts betting on the price of Bitcoin, suggesting that market participants are not pouncing on leveraged trades.
“The influx of BTC (Germany, Mt. Gox, DOJ) is slowly being absorbed. Paper BTC bets are declining, a good sign. Overall, in terms of supply, things have moved from bearish towards neutral.”
The analyst suggests that Bitcoin may trade within the current price range throughout September.
“In my opinion, another month of sideways. Then, let’s take a look again in October.”
Last month, Woo said that Bitcoin needs just a fraction of the capital stored in global wealth assets, about $5 trillion, to move its price to $1 million. The analyst doesn’t think BTC will reach that seven-figure price target in the ongoing cycle due to the significant amount of capital required.
Bitcoin is trading for $56,673 at time of writing, down 4.45% in the last 24 hours.
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