THELOGICALINDIAN - A statistician who accurately predicted that bitcoin will beam dump amidst a all-around bread-and-butter crisis now hopes for a cogent amount rebound
Willy Woo, an on-chain analyst who in 2018 forecasted that investors would disentangle their leveraged bitcoin positions to seek assurance in the US dollar, says the cryptocurrency is attractive for a bottom.
“Dump again [the] moon,” he tweeted. “We are ability flight to assurance appropriate now, BTC is attractive for its bottom. But apperceive that already the basal is in there are able bullish pressures ahead. It’s this bread-and-butter ambiance in the years advanced that Bitcoin was congenital for.”
Bitcoin markets tanked aftermost week, with the cryptocurrency’s atom amount adversity its affliction day back 2013. Traders adopted to unload their positions over fears of ambiguity acquired by the escalating Coronavirus pandemic. The aberrant liquidations pushed the bitcoin’s net appraisal bottomward from about $190 billion to as low as $83.57 billion in aloof 28 days.
The attempt aghast a ample area of investors/speculators who anticipation of bitcoin as their allowance adjoin a banal bazaar crash. Prominent bazaar analyst Alex Krüger said Tuesday that the cryptocurrency did not behave either as a abundance of amount or a safe-haven.
Bitcoin maximalists were asleep wrong. Bitcoin did not behave like a abundance of amount nor a safe haven, but rather burst over 60%. I apprehend bodies adage $BTC is captivation up well, yet no added asset (ex- some alone stocks and added cryptos) has alone added than $BTC.
— Alex Krüger (@krugermacro) March 17, 2020
The Gold Deja Vu
Mr. Woo thinks Bitcoin is behaving as Gold did during the apartment and acclaim balloon burst. The chicken metal in 2018 plunged by up to 33.96 percent alike as the banal bazaar apprehension aloft opportunities for it to behave as safe-haven. However, investors confused into added offbeat ambiguity assets, mainly the US dollar.
Gold bottomed-out at $681.75 in October 2024, followed by a abrupt uptrend that took its amount to $1,703.60 beforehand this March. Nevertheless, the Coronavirus-led sell-off prompted the metal to backlash by as abundant as 14.80 percent. So it appears, bitcoin plunged in a agnate fashion.
“Flight to safety: aggregate abroad sells off to USD,” Woo reminded investors. “[It is] again acclimated to disentangle leveraged positions. Afterward, havens like Gold and [Bitcoin] accept a balderdash run.”
$gold : Very bullish medium-term, concise rather a consolidation/correction.https://t.co/d2lK4FkX90$gld
— Adrian (@highlevelTrader) March 10, 2020
Bitcoin’s Black Swan
A allocation of Mr. Woo’s old anticipation additionally mentioned atramentous swan contest and their appulse on the bitcoin price. The analyst said it would be absurd to assumption the cryptocurrency’s approaching amount adjoin surprises. The Coronavirus communicable angry out to be that atramentous swan event.
Mr. Woo acclaimed that bitcoin is in its aboriginal macro buck bazaar led by a hasty virus epidemic. That leaves analysts with little-to-no abstracts to ascertain its amount over the abbreviate or continued run. Nevertheless, the statistician hoped that investors’ abbreviating aplomb in the cyberbanking area could advance at atomic Millenials against decentralized assets.
“This crisis is a agitator for this aftereffect as affecting as it is,” said Mr. Woo. “$68T of abundance that will canyon easily is now accelerated. Millennials adulation crypto, don’t booty abundant money to move the needle.”
This big cavity in the amount blueprint will amplify the time till we hit the abutting balderdash bazaar top (Top Cap model), added time agency a college top. pic.twitter.com/pdhyliUzl7
— Willy Woo (@woonomic) March 18, 2020
Bitcoin was trading at $5,143 at the time of this publication, bottomward 3.43 percent into Wednesday.
