Popular Analyst Expects More Volatility, Warns ‘Don’t Expect Bitcoin Price to Repeat Past Halvings’
- Miners are “capitulating” adding sell volume
- Fundamentals are different this time, hence Bitcoin market is bearish in short term
Bitcoin is yet again falling.
After recording the gains of 42%, the third-highest price gains in late October, the Bitcoin price has been on a constant decline. And now, Bitcoin has more than halfway retraced those gains as it falls to nearly $8,000 level.
Historically, Q4 has been a bullish one for the leading cryptocurrency, especially November. But looks like this time it will among the exceptions.
We started the quarter around $8,400 and are currently under the level. But with the third Bitcoin halving just around the corner, things might start turning out positive soon.
You'd probably be surprised by how many bitcoin owners don't know about the halvings… https://t.co/N7jvCUmhbp
— Jameson Lopp (@lopp) November 18, 2019
We are less than six months away from halving and according to popular analyst Willy Woo, Bitcoin has “never gone into a halvening in BEARISH price action.” Also, he says miners are already “capitulating” adding sell volume.
Trading volume has been extremely low for Bitcoin throughout Q3 and Q4 expect for a sudden bout of surges seen during the bull run like on Oct. 26.
NEVER gone into a halvening in BEARISH price action, miners already capitulating adding sell volume. Historically we front run with a BULLISH setup, miner capitulating only after halvening when revenues are slashed. This is a unique setup. Quite bearish leading up to the event. pic.twitter.com/20748Zv8aQ
— Willy Woo (@woonomic) November 18, 2019
Pump into halving
Sells hard after
Narrative is abandoned
“Was priced in”
You all cry
— ParabolicTrav (@parabolictrav) November 18, 2019
Bitcoin market is Short Term Bearish
As we have reported, Bitcoin mining difficulty has taken a drop of 7% from it's all time high of about 13.7 trillion. These adjustments are however happening like clockwork for the past 9 years. Bitcoin hash rate has also fallen as much as 29% from its peak at 110.6 Th/s.
So, How is it Affecting the Price?
Woo explains that as price moves downwards, weak miners go out of business as their profitability decreases. This is what happened when the price crashed from $6k to $3k in Q4 of 2018. The bottom at $3,200 occurred when weak miners were no longer in the market dumping their BTC.
Historically, six months before the halving, the market has been under bullish price action but this time, Woo says Bitcoin went from $14k to $7.5k. This bear market is “killing off weak miners who are dumping and dying.”
And this dumping is adding to the already bearish action as such there is no “happy front running 6-months out,” this time due to selling pressure.
The fundamentals, Woo says are different this time and he is expecting “way more” volatility. In the short term, he is bearish and warns, “don't expect price will repeat past halvenings.”