Willy Woo is well known as a digital currency analyst, especially for his long-term experience with the industry. His expertise is anything but inexperienced, which was further proven by his accurate prediction of the low $6,000 price level that Bitcoin went through in May 2018.
Based on the current information at that time, he did not believe that Bitcoin had the ability to hold onto the $7,000 price. He said,
“I think we are gonna go to $5500-5700 next, I can’t see $7000 holding. Most likely we’ll balance a bit, then we’ll slide through. Long time-frames here, looking into June for rough timing of this to play out at a best guess.” Woo added, “I don’t necessarily think we’ll fall through the 5000s… sure it’s a possibility but it doesn’t have to. It’s not a repeat, it’s not Mt Gox and Willybot pushing up price with faked orders, we aren’t detoxing from a scam bubble. Technically $5000s is a very strong support band.”
As was proven, BTC made its descent down to $5,800 by June 29th, and it skyrocketed three weeks later, taking it past $8,000. The price dropped again, though it was not as severe, taking the price down to $7,615 within 48 hours.
“Flash Dump, Then Moon.”
Based on the current state of the market, Willy Wood believes that Bitcoin will go down again, predicting it will come from a flash dump. After that, he believes that BTC will follow a similar fate to that of Wall Street in the 2008 Financial Crisis. On Twitter, Woo commented,
“Interesting to see most think BTC will moon. I think BTC will flash dump, then moon afterwards, just like with Gold in WFC 2008. Flight to safety: everything else sells off to USD, then used to unwind leveraged positions, then afterwards havens like Gold and BTC have a bull run.”
Woo continued, saying that the way that Bitcoin behaves will be the catalyst for institutional investors getting involved.
“Probably also contingent on how many institutional players are in the BTC market over that period. Normal retail HODLers won’t tend to have large leveraged positions to unwind from, apart from maybe mortgages,” he said. While in a bear market, Woo says to “stay in USD as a base currency, then short (and long with extra care). When in bull stay in BTC and do vice versa.”
In the past, Woo has used the NVT signal/ratio for some of his predictions for the market, including Bitcoin. The standard NVT ratio is an equation – take the network valuation and divide it by the transaction value. The NVT signal is the result of research between Willy Woo and Dimitry Kalichki.