One of the major analysts named Willy Woo recently said that we can see a unique setup which results in a bearish period for Bitcoin (BTC). As the most dominant cryptocurrency struggles to maintain the $8,000 levels, analysts warn that the outlook of the market is increasingly bearish.
They do not rule out the possibility of many cryptocurrencies going lower in the near future. According to data, BTC/USD is bouncing off the lows of $8,077 and is now at $8,176 – still under the $8,200 mark as we reported earlier in our Bitcoin news updates.
Everything started yesterday when a sudden dip took the pair below $8,100 for the first time since late October this year. The price action is fluctuating around this level ever since then. At press time, a slight reversal had taken the major cryptocurrency back to $8,150 with daily losses still at 3.7% and weekly losses totalling around 7%.
Unsurprisingly for many, analysts revealed that the unique setup for BTC now is a major cause for concern – not only in the short term, but even after the May 2020 and the block reward halving scheduled for the month.
“I expect way more volatility. Short term bearish is all I’m saying. And don’t expect price will repeat past halvenings,” the analyst Willy Woo summed up in a Twitter post this Monday.
NEVER gone into a halvening in BEARISH price action, miners already capitulating adding sell volume. Historically we front run with a BULLISH setup, miner capitulating only after halvening when revenues are slashed. This is a unique setup. Quite bearish leading up to the event. pic.twitter.com/20748Zv8aQ
— Willy Woo (@woonomic) November 18, 2019
Woo also referred to the historical trends in Bitcoin which saw the cryptocurrency with bullish action during the previous halvings in 2012 and 2016. Previously, the sentiment likewise favored the 2020 event as a bullish turning point with markets entering a highly bullish phase thereafter. This time, the bears are in control.
The unique setup for BTC is something that Willy Woo accepted and noted:
“Well this time around, we have gone $14k->$7.5k and that’s killing off weak miners who are dumping and dying. This adds to the already bearish action, so no happy front running 6-months out due to sell pressure. You can’t draw repeat fractals, the fundamentals are different.”
As we reported before, a traditionally accurate Bitcoin price model still calls for an action in the $8,300 region until the halving. However, everything is possible until then – and we expect to see new changes in the daily and weekly cryptocurrency news from tomorrow.
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