On-chain analyst Willy Woo says that Bitcoin (BTC) has entered a period of “maximum noobishness.”
Woo tells Scott Melker in a new interview that BTC is now in a zone where the “smart money” has essentially stopped selling.
The coins that are currently moving among investors are “young” assets that were recently acquired, says Woo.
The analyst relies on a metric called “cumulative value-days destroyed” (CVDD), also known as “destruction.” According to Woo, destruction is a ratio that expresses the duration of a held asset to the age of the market.
Woo says that he sees bullish signs when destruction bottoms and young coins are rampant.
“You can look at the age of the coins moving per volume, moving between investors. And whenever it reaches a low of destruction, meaning those coins that are moving between investors are young, that means the sellers are newbs.
We’re at maximum noobishness and whenever that bottoms, that’s a time to buy. And it’s just bottomed in this last week. We’re at max noob selling and the OGs are not selling. They’re buying.”
The analyst also points to Bitcoin’s massive network growth as a potential sign of strength.
“If you wind back the clock to 2018 to now, the network growth in terms of users you can see on the blockchain – it’s gone parabolic.
I’m talking about parabolic on a log chart like we’re used to. Normally it grows and then the growth rate starts to taper off. For the last three years the growth rate has been going parabolic. Never been seen before.”
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The post Bitcoin Analyst Says ‘Young’ BTC Is on the Move – Here’s What It Could Mean for the Markets appeared first on The Daily Hodl.