Willy Woo Sells His Bitcoin Stash, Says BTC Flashing 2013-Style Bearish Divergences
Analyst Willy Woo says he has exited his Bitcoin position and is warning that BTC is flashing similar 2013 bearish divergence signals.
Woo tells his 1.2 million followers on the social media platform X that Bitcoin’s market value to realized value (MVRV) Z-score is signaling a possible downtrend .
The MVRV Z-score metric compares the market cap of BTC to the value of each coin the last time it was moved to gauge whether Bitcoin is undervalued, overvalued, or at fair value.
“MVRV tracks how BTC is valued vs the capital that’s been invested. We like to ask ‘what’s different this cycle?’ Let me ask you. What did you see change in each past cycle, what’s different this cycle?…
We’re seeing more bearish divergences for sure. Unseen since 2013’s double top.”
Source: Willy Woo/X
A bearish divergence with the MVRV Z-score occurs when the price of Bitcoin makes higher highs, but the MVRV Z-score makes lower highs.
Woo also responded to one X user who asked why he sold his BTC.
Says Woo,
“It was a rotation to higher up the risk curve to support the picks and shovels behind BTC. I’ll talk more about it in some podcasts that got recorded, mostly it’s personal to my situation and not about exiting Bitcoin.”
Lastly, Woo says that Bitcoin’s market is currently being driven largely by investments from high-net-worth individuals (HNWIs), a stark difference from previous market cycles.
“[Retail traders] are there. Just 10x deemphasized. What moves price now are the large pools of capital inside the $900 trillion buckets of wealth assets. We are in a whale phase of HNWIs. Future flows will be retail money, but managed by gatekeepers: sovereigns and pension funds.”
Bitcoin is trading for $119,664 at time of writing, down marginally in the last 24 hours.
Generated Image: DALLE3
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
US Treasury mulls digital ID verification in DeFi to curb illicit finance
Share link:In this post: The United States Treasury is looking into the possibility of using digital identity to check illicit financial activities in the DeFi sector. The agency is entertaining public comment on the issue, and it is expected to close by October 17. United States banks have warned of stablecoin yield, noting that it could disrupt the American credit system.
Markets brace for a heavy data week, Fed’s Powell in focus
Share link:In this post: After Trump’s failed Alaska summit with Putin, Zelensky heads to Washington. Markets await July minutes and Powell’s Jackson Hole speech, with pressure mounting for rate cuts. Flash PMI figures from the US and globally will reveal how Trump’s new tariffs are rippling.
Trump axes August trade talks with India after summit with Putin
Share link:In this post: Trump canceled U.S.-India trade talks scheduled for August 25–29 after meeting with Putin. New tariffs of up to 50% on Indian goods will begin on August 27 due to India’s Russian oil imports. Modi responded with nationalist economic reforms, promising tax changes and domestic chip production.
Japan to approve yen-backed stablecoins for first time this fall
Share link:In this post: Japan will approve yen-backed stablecoins this fall, starting with fintech firm JPYC. JPYC tokens will be backed by bank deposits and Japanese government bonds. Profits from the bonds stay with the issuer; users won’t earn interest.
Trending news
MoreCrypto prices
More
