Veteran digital currency analyst, Willy Woo, correctly predicted back in late May, that Bitcoin (BTC) would test levels below $6,000 before any signs of recovery would be seen in the markets. Back then, he did not see BTC holding the $7,000 price level and had this to say:
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 would also add that BTC was less likely to drop below $5,000 during that time period.
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
Sure enough, BTC fell to its lowest value this year on June 29th when it was valued at approximately $5,800 – $5,900. Three weeks later, BTC has been soaring at levels above $8,000 since last Tuesday, July 24th. However, these values have been short lived for BTC has dropped to the current value of $7,615 in a period of just 2 days.
The Flash Dump then Moon
Willy Woo has once again predicted that Bitcoin will probably continue to decline in value due to a flash dump. When this is done, BTC will moon just like Gold did during the Wallstreet Financial Crisis of 2008. Mr. Woo made this comments via twitter when he stated the following:
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.
He would also add that its performance is contingent on institutional investors buying BTC.
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.
The full tweet can be seen below.
Willy Woo has also advised how to trade in a bear market. He stated that:
When in bear, stay in USD as a base currency, then short (and long with extra care). When in bull stay in BTC and do vice versa.
Mr. Woo has on many occasions preferred to use the NVT signal/ratio to analyze the future of BTC. Standard NVT Ratio is simply the Network Valuation divided by the Transaction Value flowing through the blockchain and then smoothed using a moving average. NVT Signal then applies the moving average to only the transaction value. The signal is the work of Willy Woo and Dimitry Kalichki.