Cryptocurrencies have seen a fluctuation in their value since their inception. Bitcoin, the leading cryptocurrency, however, reached an all-time this year but ultimately flatlined near $6,500 in mid-October. Following the downfall, many analysts believed that now Bitcoin will start seeing a rise in the market and eventually gain a lot in 2019. Willy Woo, a technical analyst and trader believe the otherwise.
Willy Woo reached out via Twitter to express his opinion that Bitcoin might not see the light as soon as others are predicting. As per him, Bitcoin’s price will take until the second quarter of 2019 to find a floor. It means that the market might face another seven months of downward spiral and pressure before the value of Bitcoin starts to rise.
There have been a variety of technical data points that justify an optimistic outlook for Bitcoin’s pricing in the near future. Also, there have been high-profile institutions entering the cryptocurrency ecosystem. Additionally, the increase in the transaction rate and a steady average daily trading volume is also viewed as a positive sign. On the contrary, Woo cited many proprietary technical indicators that do show that Bitcoin is going nowhere up, at least in the near future.
As per his analysis, the Bitcoin network valuation divided by transaction value (NVTS) has broken below its support level and generally, such a drop means it is a classic sell signal. Also, the Bitcoin Network Momentum (BNM) has still not ramped up, which generally is a sign ahead of a bull cycle. Woo isn’t pessimistic about the rise in price, but as per him, it will take some more time before the price goes about the 200 Day Moving Average (DMA).