Bitcoin’s price was under unexpected downward pressure in May as Consensus 2018 did not generate enough enthusiasm for a bullish move. Analyst Willy Woo said that the virtual currency will rise only in Q3/Q4 2018. By then, the bitcoin price could drop to $5,500.
Bitcoin downtrend up to $5,500-$5,700 possible
The crypto currency market was under pressure in 2018 after Bitcoin broke through $20,000. Traders expected the Blockchain week in New York to trigger a new bullish momentum, but the market lost 52 billion dollars.
Bitcoin has again reached the lows of 2018. Willy Woo, a technical analyst with around 62,500 Twitter fans, is not very optimistic about the direction the market will take next. Woo expects the bitcoin market to fall towards $5500.
Show picture on Twitter
Show picture on Twitter
I think Bitcoin Profit will rock
I think we are gonna go to $5500-5700 next, I can’t see $7000 holding. Most likely the review we’ll balance a bit, then we’ll slide through. Long timeframes here, looking into June for rough timing of this to play out at a best guess. /1
05:54 – 26 May 2018
214 users talking about it
“NVT SIGNAL IS STILL TOO HIGH. WE NEED MORE BLOCKCHAIN TRANSACTION ACTIVITY TO JUSTIFY THE CURRENT PRICE OR TO LOWER THE PRICE TO COMPENSATE FOR THE DIFFERENCE. IT IS VERY UNLIKELY THAT TRANSACTION ACTIVITY WILL GO DOWN IN ONE GO,” SAID WOO, POINTING OUT THE EXTREME MARKET MOVEMENTS.
NVT signal is a specially created indicator that divides the network value by the transaction value. However, the analyst does not believe that the $5000 mark will be broken as he believes that this zone is a strong support area and that there will be no shock reports as a Mt.Gox scandal or other negative headlines will keep this area:
I DON’T NECESSARILY THINK WE’LL FALL THROUGH THE 5000S…IT’S NOT A REPETITION, IT’S NOT MT GOX AND WILLYBOT WHO DRIVE THE PRICE UP WITH FAKE ORDERS, WE’RE NOT RECOVERING FROM A FRAUD BUBBLE. TECHNICALLY, $5000 IS A VERY STRONG SUPPORT ZONE.”
The crypto currency market in 2018 is more mature than in 2014, as there are no longer “a few whales that randomly set things in motion”, allowing a more reliable understanding of prices based on fundamental data. Woo says that Bitcoin is not a market for long periods of time, instead it is an adoption curve (increase, consolidation, increase, consolidation). The analyst expects Bitcoin to fall steadily to $6,800 before dropping to $5700. The next bullish momentum is expected to occur in Q3/Q4 2018, according to Woo.