Is Bitcoin in a Macro Bull Market? On-Chain Analyst Willy Woo Thinks so (Zycrypto)
Willy woo is a popular on-chain analyst and Bitcoin bull. Woo has recently written a series of tweets explaining the current structure of the market and how Bitcoin is still in a macro bull market.
According to Woo, the initial move from $4k to $14k was only powered by short squeezes and not investors actually buying /tag/bitcoin”>Bitcoin for its value. A short squeeze happens when short-sellers are forced to cover their positions, essentially having to buy the asset back, in result, this drives the price up.
Woo also stated that he is pretty sure the bottom is in at $7000. Woo explains that his indicators created for Adaptive Capital, a cryptocurrency hedge fund, have signaled this 4 weeks ago.
Bitcoin is currently trading around $9000 and Woo expects the $8600 CME gap to be filled before taking off. A gap can only happen in /only-xrp-and-eth-need-to-merge-with-big-traditional-markets-for-mass-crypto-adoption-to-occur-coinfield-ceo/”>traditional stock markets or futures, it’s essentially a change in price levels between the close and open of consecutive days. It doesn’t happen in traditional crypto exchanges because they operate 24/7.
Bitcoin Sentiment Slowly Turning Positive
The on-chain analysis provided by Woo states that the market seems to be changing fast towards a more /high-correlation-between-bitcoin-and-ethereum-imply-market-isnt-bullish-yet/”>bullish structure. It’s currently still bearish and according to Woo, it will still take a few months before it shifts bullish.
This definitely seems to be the case, according to the fear and greed index provided by Alternative.me, the market is currently neutral but was fearful for the past few weeks. This index is calculated using volatility, market momentum, social media analysis, surveys, dominance, and trends.
Other Key Points According to Willy Woo
Woo also mentioned that he is expecting a breakout to take place after December of this year. He specifically mentioned the range between December and March 2020. Woo states that Bitcoin will enter the second phase of the bull market when the price sees a monthly close above $14k.
Thoughts of 2020?
Once we get a monthly close above $14k, we’ll be in the second phase of the bull market; a steady, lowish volatility, run in price. Should happen by the start of 2020, that’s the best time to deploy capital.
2020 = https://t.co/CbWCCXse5N
— Willy Woo (@woonomic) November 4, 2019
Woo has recently explained his personal view of the Bitcoin bull markets and how they can be divided into 3 phases. The accumulation phase, which is happening currently, the long and steady climb with low volatility, that’s the second phase. The third and final phase is when volatility goes out of control and prices explode.