Analyst Willy Woo Believes Bitcoin Is Yet To Escape The Bears

Even if you have cursorily glanced at Bitcoin price -related headlines over 2018, you would know it’s been a downward spiral so far. With 2019 coming in, many experts have been predicting a bull run soon, especially in view of increasing transactions and trade volumes. However, analyst Willy Woo claims Bitcoin is still in the bearish zone.

Recently, we reported how an analysis of the Bitcoin “buying streak” has suggested that Bitcoin could become bullish in the coming months. After the crypto winter that lasted through the whole of last year, with only brief improvements in between, the experts have felt that the market has been energised with the coming of the new year, which incidentally marks a decade of the pioneering cryptocurrency.

However, Willy Woo argues vehemently against such optimistic evaluations. He says that increase in on-chain volumes cannot be enough to sustain a true bull run.

According to him the on-chain volumes have risen only because of the immense volatility inherent in Bitcoin pricing.

Writing to his followers via his Twitter account, he wrote:

“The initial volume spike false signaled a faster detox and an earlier end to the bear market, but in fact, it was a volatility side effect. That move from $6k to $3k created immense trade volume, but it was in no way a signal that accumulation volume had begun.”

His argument hinges itself on the idea that although bullishness may be a possibility, the on-chain volume does not seem to be organic enough to sustain a strong bull run.

Hie further analyses that volumes have fallen to usual numbers. Besides the value being transacted on the network is falling short of the total network valuation, as exemplified by the Network Value to Transactions (NVT) chart reaching higher numbers.

Woo came up with the NVT metric to help experts and market analysts understand how the inherent value of Bitcoin or any other cryptocurrency is working.

Earlier, in November 2018 also, Woo had argued that the Bitcoin’s price levels would continue to be stuck in a bearish loop till at least half of 2019, perhaps longer.

He had said back then:

If price (in the short term) bounces upwards here, which is certainly possible, I think the 200 day moving average is the upper band of the move. This is ~$7k right now. Remember if the price goes above the 200 DMA, 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.

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