In May, cryptocurrency veteran Willy Woo predicted perfectly that Bitcoin (BTC) would test support levels below $6,000, before the cryptocurrency market sees any kind of concrete recovery.
While several analysts expected Bitcoin to hold on to $7,000 levels, Woo firmly stated that it will drop below the crucial level. At that time, Woo shared the following opinion.
“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 also stated that BTC may drop below $5,000.
“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.”
In line with Woo’s forecast, BTC hit $5,825 on June 29. A month later, the crypto king was trading at $8,300 levels. However, selling pressure and Bitcoin ETF rejection by the SEC took a toll on the price, leading to a decline to $7,500 levels in the past two days.
Woo has once again shared his forecast for Bitcoin. He expects the price to plunge sharply below $5,000. Once that gets completed, Bitcoin will rise in the same manner as Gold did during the Wall Street financial crisis in 2008. Woo tweeted the following message
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. https://t.co/hSscpQXG6n
— Willy Woo [beware of imposters] (@woonomic) August 1, 2018
The main condition laid out by Woo for the big rally to begin in Bitcoin is that institutional investors should start coming in.
“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.”
Finally, to aspiring cryptocurrency traders, Willy Woo gave the following advice to follow while trading in a bear market.
“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.”
Woo often prefers to use the NVT signal/ratio to forecast the direction of BTC. Standard NVT Ratio is “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 calculation was first introduced by Willy Woo and Dimitry Kalichki.
