Bitcoin price has dropped significantly this week. Top altcoins follow in the footsteps of Bitcoin. The biggest losers suffered up to 90% correction. But well-known cryptocurrency market analyst Willy Woo believes that Bitcoin’s uptrend is not over yet. Moreover, according to him, now is one of the best times to buy cryptocurrency. And selling the main cryptocurrency right now is crazy.
He clarified that when the price goes down, weak miners leave the market. So, at the moment, Woo doesn’t see an increased interest in Bitcoin from ordinary investors. He made this conclusion by analyzing the volumes of their transactions, which all the time remained in the standard range, or decreased. This has already happened against the background of previous price drops.
Earlier, the analyst also noted that Bitcoin has four-year cycles associated with halving the reward to miners, which gives impetus to the growth of the cryptocurrency. The next halving, according to him, was to take place in May of this year, which we are seeing.
Now, with prices falling, people are buying more cryptocurrency than ever before. We know who does it – people who constantly buy but don’t sell. If you have enough capital, there is nothing stopping you from constantly buying and buying until the bears are liquidated. According to Woo, there is no need to sell Bitcoins today because the price of the asset is “at the bottom”. And he noted that he personally is now building up his long positions.
Bitcoin moves from exchanges to individual wallets
According to Glassnode, a large number of Bitcoins have left centralized exchanges.
Woo believes this figure is positive because it shows that investors are transferring funds from trading platforms to personal wallets. This indicates that users are holding their BTC with a long term investment strategy.
Positive alignment for the first cryptocurrency
Woo noted that many macro indicators point to a positive alignment for the price of Bitcoin in the near future, he spoke about this during an interview with Peter McCormack. Although he also said that the value of Bitcoin may still fall before the cryptocurrency market recovers. In the short term, the risk for Bitcoin’s continued rally continues to be the crowded derivatives market. Thus, analysts expect some consolidation, but not a deep correction. They believe that we will not see a pullback of the cryptocurrency below $ 30,000. And the bottom will be passed when weak miners leave and no longer dump the market.
Woo noted that Bitcoin could grow 35 times the cumulative average price. And this has already happened many times. Now the maximum is, as he believes, above $ 50,000, but every day this maximum is growing.
He noted that the peak in the price of the first cryptocurrency will depend on how long the bull season lasts in the current cycle. The maximum can be anywhere from $ 100,000 to $ 250,000.
Many market participants see this forecast as utopian, but so far analysts have only to guess how Bitcoin will behave.