The course that the price of bitcoin (BTC) will follow is a mystery that not even its creator, Satoshi Nakamoto, knows. Anyway, some analysts are encouraged to give their predictions. This is the case of the professional trader Willy Woo.
For this species, cryptocurrency is “oversold”. Woo reaches that conclusion after analyzing on-chain data (in the chain) and has reported it in his market report number 45, to which CriptoNoticias had access.
In any case, the trader does not foresee a considerable price rebound in the immediate future, although he clarifies that “we are close to hitting bottom”. “BTC is generally in a zone of lateral accumulation with low volumes in the spot market [al contado]. This in relation to the futures markets where most of the short-term speculation takes place, ”he explains.
For this market connoisseur, originally from Hong Kong, the behavior of the price of bitcoin is quite similar to what it had during 2019 and 2020, with a high correlation with the stock market. This medium provided, days ago, a detailed report on this matter, which shows that “Bitcoin and traditional markets are dancing to the same rhythm.”
In this situation, they are the long-term hodlers (both individual and institutional) that make bitcoin maintain its support. Willy Woo explains that, traditionally, this type of investor takes profits (that is, they exchange their BTC for fiat money or stablecoins) when the price of the asset increases considerably. But in the current situation, according to Woo, hodlers “presumably perceive BTC as too cheap to sell.”
The specialist accompanies his explanation with a graph in which it is observed that bitcoin is currently at an accumulation peak (peak accumulation). At times like this, hodlers with liquidity buy more BTC with the expectation of selling it at a higher price.
With this in mind, and if the analysis is correct, it could be thought that it is a good time to buy bitcoin, if it is taken as an investment in the medium or long term. It is worth clarifying that this is not financial advice and that the volatility of the cryptocurrency, as is known, is usually high.
Woo himself clarifies that “speculators are not yet optimistic.” In his market report, the trader explains that he reaches this conclusion based on an indicator known as the “PDl Oscillator”. It “tracks short-term supply and demand from speculators using data from futures exchanges.”
Bitcoin’s downtrend is about to end
Anyway, although the market is not optimistic, for Woo, “the downtrend that we have had for 9 weeks in a row, has now lasted long enough to have a high probability of exhausting itself”.
At the time of writing this article, the price of bitcoin is USD 41,800, as can be seen in the CryptoNews Calculator. The downtrend referred to by Willy Woo began on November 10, after bitcoin reached its all-time high price above $68,000.
According to the predictions that the aforementioned trader made in 2020 and 2021, the bullish cycle of bitcoin (and, therefore, of the entire cryptocurrency market) would extend, at least, until the first quarter of 2022 with prices that could exceed the $100,000. For this to happen, BTC would have to at least double in price before March 31. There are 72 days left to check if Woo’s analyzes were successful or not.