Foundations of Bitcoin hinting at the trend of the bear
Willy Woo, a prominent researcher, analyst and commentator on Australian cryptocurrencies, recently took up his well-quoted Twitter feed to broadcast his latest bit-based analysis of Bitcoin (BTC). According to its proprietary network indicators, which many claim are better than pure technical aspects, "there are not many on-chain volumes to power a prolonged move [to the upside]"He then went on to note that the inflow of BTC traded could be attributed to market volatility, which prompted investors to send their trading holdings to capitalize / liquidate.
Although the technical approach that suggests a bullish is possible, there is not much volume on the chain to fuel a prolonged move. What we have seen in the last 7 weeks has been a spike in on-chain volume driven by volatility, from currencies moving to trade. pic.twitter.com/MVxlN8ttO1
– Willy Woo (@woonomic) 5 January 2019
Woo explained that this volatility initially indicated that it may be in sight of a "first bear market", but noted that it was actually false. The analyst noted that there are no apparent signs that the accumulation began to occur, despite growth in UTXOs.
As such, taking into account its "Bitcoin Network Value Transaction Ratio (NVT)" measure, Woo noted that it means the NVT chart is on the "high side of its swing". Although this does not mean that BTC will definitely head down, Woo noted for him, this means that probably the top cryptocurrency has little room to run, so in the long run bears will trade.
Yet, the Crypto market is imposed to follow the Ethereum command
Despite the harrowing image that Woo has painted for Bitcoin in the coming months, the cryptography market has undergone a short-term surge on Sunday, apparently without catalysts. As reported by Ethereum World News earlier, BTC rose above $ 4,000 for the first time in weeks, with other cryptocurrencies closely following it.
For Live Coin Watch, one of the leading cryptographic analysis providers, BTC is currently valued at $ 4.080 apiece, with $ 5.02 billion in 24-hour volumes to satisfy its 4.33% gain.
Although most of his brothers altcoin has increased, with XRP recording a gain of 2.5%, EOS has increased by 5.6%, and Litecoin has increased by 10%, Ethereum has even collapsed, losing a pinch of its value. At the time of publication, ETH is down 0.25%, underperforming its best cryptocurrencies due to its relatively strong performance (~ 80%) over the past two weeks. The surge of Ether has been attributed to the imminent crooked fork of Constantinople, which will reduce the ETH emission by 33%, which risks being bullish over time.
However, if Woo's analysis is an indicator, there is the possibility that cryptocurrencies may go lower in the coming weeks / months, just as many other commentators expect. For previous reports from us, Anthony Pompliano, founder of Morgan Creek Digital Assets and a leading anti-establishment figure, believes that BTC will review levels below $ 3000 before exceeding its historic high of late 2017 in the future.
Title Image Courtesy of Andre Francois Mckenzie Via Unsplash