Bitcoin rise not organic, analyst says: 'True bull run after correction'

06 Jun, 2019
by Jelmer van der Dussen
Bitcoin rise not organic, analyst says: 'True bull run after correction'

Market analyst Willy Woo has given his explanation on the recent Bitcoin run to $9000, and the drop to $7800 that followed in the last few days. According to Woo, the recent BTC rise is 'exchange driven' and more downside is to come.

On Twitter, Woo sets out his theory that the recent run up to $9000 by Bitcoin is the result of large players with a lot of money that wanted to liquidate the bears, in other words, the people who went short on Bitcoin. 'If you have sufficient capital, you can keep buying to liquidate the bears. It's extremely profitable', Woo says.

'You only stop when it's no longer profitable. At the $8000-$9000 mark the market switched from short to majorty long. This put a cap on the profitability of short squeezing.' During Bitcoin's surge, many shorts were liquidated in multiple waves. The biggest wave was on May 27, with BitMEX short liquidations hitting $131.4 million.

On May 30, in a move that took Bitcoin above $9000 and back to $8000 in a matter of hours, both shorts and longs were liquidated. First the shorts ($19.7M) got rekt with BTC breaking $9000, then the longs ($32.2M) followed because of Bitcoin dropping below $8300.

Since then, the market has switched from short to long, and short squeezing wasn't an option anymore for the whales. Woo thinks Bitcoin will retrace more following this shift and will return to 'normal' levels. 'I'm awaiting this exchange driven pump to blow off, a proper retrace, and only then do I think real investor flows will come in and drive the true organic bull market', Woo said.

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