More Pain is Ahead for Bitcoin Bulls, Willy Woo Says
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.
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.”
It’s true that the entrance of institutions in the cryptomarket along with the steady volume and increasing number of Bitcoin transactions are enhancing the bulls’ confidence for the potential rally. Willy Woo, on the other hand, has also presented solid arguments to support his bearish call for the following six to eight months. Anything can happen in crypto markets. Therefore, traders should keep a close eye on all the technical and fundamentals aspects.
What’s your opinion about Willy Woo’s bearish outlook? Express your opinion in the comment section below.