The cryptocurrency market has been in a bear trend since the start of this year. The market has lost almost $600 billion during the bear run while the majority of big coins are trading 70% below their all-time high that they had hit early this year. Bear market likely continues, as many indicators show that the downturn is far from over.

Bulls and market participants, however, are continually predicting that the bear run is almost over; they believe Bitcoin has found the bottom around $5,400 level last week. Some analysts are of the opinion that Bitcoin will repeat its history of creating a sharp rally in December.

Willy Woo Thinks Differently

In a Twitter message, Willy Woo clearly indicated that he isn’t seeing the bull-run in crypto markets until the second quarter of fiscal 2019. Indeed, he claims the market is likely to remain in a bear market over the coming six to eight months.

Willy Woo has supported his argument by providing insight on a few technical indicators. Woo said NVTS (Bitcoin network valuation divided by transaction value) is currently standing below its support level, which he believes is a perfect sell signal. He also claims that Bitcoin Network Momentum(BNM) hasn’t ramped up yet, which generally occur before the bull cycle.

The analysts also pointed out moving averages. He says Bitcoin has to break above its 200-Day Moving Average (DMA) in order to shift to bull market from the bearish trend.

“If price (in the short term) bounces upwards here, which is certainly possible, I think the200-day moving average is the upper band of the move. This is ~$7k right now,” he wrote on Tuesday. “Remember if the price goes above the200DMA, in the history of BTCUSD’s 8-year trade history, it’s been a reliable indicator of a bear to bull transitions. It’s too early to transition out of the bear.”

Conclusion

It’s true that institutions entering the cryptomarket, along with steady volume and a rising number of Bitcoin transactions, are boosting bulls’ confidence in a potential rally. Bear market likely continues, as Willy Woo has presented strong arguments supporting his bearish outlook for the next six to eight months. Anything can happen in crypto markets. Traders should therefore watch technical and fundamental aspects closely.

What’s your opinion about Willy Woo’s bearish outlook? Express your opinion in the comment section below.