Stand Out Crypto Trading Analyst Wily Woo Expects Bitcoin Bear Markets to Continue
Willy Woo, an experienced Bitcoin analyst, believes that the cryptocurrency’s bear market will persist for a bit longer. This stance contradicts the opinion of other industry experts who were confident that the price dip has ended, and were expecting a bull market to commence.
Since the beginning of the year, Bitcoin and other digital currencies have been plummeting in value. As a result, the value of Bitcoin has declined by almost two-thirds, with the market capitalization also reducing from nearly $300 billion to the current $110 billion.
Prior to the commencement of the price dip, Bitcoin underwent an unprecedented bullish trend. The price rose from $3,500 to a record $20,000 in a relatively short period. This rapid growth in value attracted a large number of new investors, a factor that significantly contributed to the increase in market capitalization value.
A majority of investors who were lured into the crypto market during the bullish run are now ruing their hasty decision, mainly because of the losses they have made. Although some have already sold off their remaining crypto assets, a substantial number are still holding on as they await the market to recover. Notably, the decision to either withdraw or be patient is subject to an individual's interpretation of the market according to the information available to them.
Earlier on, Mike Novogratz, a billionaire crypto investor, predicted that the bearish trend will soon end, citing a similar dip that preceded last year’s famous bullish run. Mike further said that the crypto market likes to retrace breakouts, and Bitcoin has already retraced the bubble before the bullish trend. Besides Novogratz, several other prominent individuals within the crypto space have proclaimed that the bearish trend will end soon. However, their calls have been proven wrong by the constant dips in the value of the world’s first digital currency.
As mentioned earlier, Woo has adopted a different stand regarding the imminent future of Bitcoin. He speculated that the bearish trend will persist, basing his predictions on the past history of the virtual currency. Precisely, Woo tweeted that Bitcoin has only had three bear markets since its inception. He added that the current dip is the third bear market, and predicted that it would last until the 200-day moving average elapses.
Additionally, Woo also alluded to the Bitcoin NVT ratio to support his projection. In this regard, the veteran said that NVT typically peaks during bearish runs, and is still a reliable indicator for the end of a bear trend although it is usually slow to detect such trends. For now, the NVT ratio is yet to return to its normal rate, meaning that the bear market will go on for a while.
Cryptocurrencies are undoubtedly among one of the most followed markets globally. The current market has been attributed to a number of factors, most of which are typical of any market. Despite the disparity in opinions regarding the future of digital currencies, most of the key players maintain that the value will eventually rise again. Nonetheless, nobody seems to know when the bullish run will start.