Bitcoin (BTC) has fallen more than 80% since its all-time high back in 2017. It moved from $20,000 down to $3,200 after a year. At the moment, there are some bullish analysts that predict Bitcoin to start growing in the near future.
However, the crypto analyst Willy Woo commented that bears could still have the control of the market. According to him, on-chain volumes in the crypto market are yet too little for a sustained run. He said that in a round of tweets uploaded on January 4.
According to him, the initial volume spike false signalled a faster detox and an earlier end to the current bear market.
Despite the technical setup that suggests bullishness is possible, there's not a lot on-chain volume to fuel a prolonged up move. What we saw in the last 7 weeks was a spike of on-chain volume driven by volatility, coins moving to exchanges to trade. pic.twitter.com/MVxlN8ttO1
— Willy Woo (@woonomic) January 5, 2019
According to him, the current bear trend remains and the move up was just limited. In the long-term, Willy Woo says that bears will still win. Although he did not provide a clear time-frame, the long-term here seems to be talking about the next weeks and months rather than a longer period of time.
Willy Woo went on explaining that the volume has already fallen, leaving the Network Value to Transactions (NVT) chart on the high side. That means that the value that is currently being transmitted on the network is lower than the valuation of the network.
The analyst predicted back in November 2018 that Bitcoin was going to keep falling in the future. On November 14, the market fell to new lows in more than a year. Since that moment, bitcoin recovered around 28% of its value.
About it he commented at that time:
“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.”