After his last market bulletin, last Monday, August 23, in which he warned of "a short-term bearish outlook" in the bitcoin market, analyst Willy Woo points out this Friday that long-term investors are returning to an accumulation phase.
"A new supply shock is forming that is expected to push the price up in the fourth quarter of this year, similar to what happened in the fourth quarter of 2020 and the first quarter of 2021," the report says. analyst in his analysis this Friday.
A situation that has not been seen so far in the bitcoin market is taking shape, Woo notes, as there are early signs that the bitcoin cycle scheme of the last four years may be broken. The analyst had already referred to this issue in a tweet on August 18. Woo said at the time that, if the bull cycle extended to 2022, bitcoin could break free from the four-year cycles that halvings have imposed so far.
In the following graph, it can be seen that both the shock, or unavailability of supply on exchanges, and the shock due to investor demand, show a rebound in recent days.
This implies that investors are hoarding and exchanges inventories have shrunk, both indicators of upward pressure on the price of bitcoin, Woo notes. "The reality is that there is a supply shock and a flat price action outlook, not a bearish one," the analyst said.