The popular Bitcoin analyst, Willy Woo, posted on Twitter that he was working on a new price model for Bitcoin. This new model is supposedly going to bring the bullish trend back into action in a month.
The year 2020 has been one rollercoaster ride for cryptocurrency, especially Bitcoin. With the price crossing $10K in the initial months to falling way below $6K and even to $3.6K on BitMex, thanks to the rapidly spreading pandemic, crypto traders have seen the best and worst in the last few months.
The previous week has seen quite a fluctuation in the price as it moved from $8.8K to a little over $10K and fell back to $9K. Overall, if we were to see $9K has been recurring regularly. It shows that the price is gearing up to cross the $10K barrier with little success.
Willy Woo is the cofounder of Hypersheet and a famous Bitcoin analyst. His tweet on Sunday gave hope to a lot of traders who are desperate and eager for another bullish run. According to Woo, his new price model suggests that we are set for another bullish market in the coming month or so.
Calling COVID-19, the white swan that killed the previous bullish trend (in Jan and Feb 2020), he posted a few charts to support his theory. He hints that if it wasn’t for the pandemic, the bull market would have been in full swing.
He goes on to state that ‘the longer this bull market takes to wind up, the higher the peak price model (Top Cap Model)’. He insists that a long sideways accumulation can be a good thing ultimately.
He also feels that if the Bitcoin prices can remain stable for a while, it would further strengthen the bullish trend for the next breakout. And since Bitcoin has been hovering around the $9K (as we’ve mentioned above), the chances of Bitcoin being less volatile for a while seem to be likely.
While anything can happen in the crypto market, this current defending of $9K and the continuous wearing out of the resistance to cross the $10,000 threshold have given support to his analysis.
Difference of Opinion
It’s quite natural for others to have a different opinion. Adam Bornstein replied to Woo’s tweet, saying that technical analysis and Bitcoin don’t go hand in hand. There is too much of everything to consider that could create a completely different scenario.
Woo responded to Adam by countering that his chart shows 8 years of macro data, though he did say that Adam’s remark stands true for intra-week movements.
Tony Vays too, didn’t agree with Woo’s analysis. He stated (to ibtimes) that the price of Bitcoin wouldn’t go over $10,000 until 2021.
Considering that the fall on BitMex resulted in more than $1 billion worth of assets being liquated and the continuous sideways trading happening in the market, we will have to wait and see if Woo’s analysis comes true.
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