According to a prominent cryptocurrency analyst and researcher Willy Woo, Bitcoin has not gathered enough momentum yet to enable it to attain a massive breakout. He said the flagship cryptocurrency might have to dip further before establishing a bottom due to a low transaction volume. Woo said that Bitcoin price might fall below the $4000 mark in the short term. His tweet reads:
“In order for the bottom to be in, the volume of coins changing hands becomes steady. Currently, it’s very erratic, synonymous with middle of the bear detox.”
Ever since May last year when the price Bitcoin failed to test a critical support level at $10000, the crypto market has been on a continuous decline. All the top altcoins also appear to be following in the footstep of Bitcoin. The biggest losers have corrected upwards of 90% from all-time highs.
Woo predicted Bitcoin will fall below $6000
In May last year, Woo predicted correctly that the value of Bitcoin would fall below the $6000 price point, before the crypto market recovers. While many analysts at that time maintained that Bitcoin would stay at $7000, Woo insisted that it will decline below the critical level.
“I think we are gonna go to $5500-5700 next; I can’t see $7000 holding. Most likely we’ll balance a bit, then we’ll slide through. Long time-frames here, looking into June for rough timing of this to play out at a best guess.”
Peter Brandt, the veteran trader who predicted the Bitcoin price dipping by over 80% from its all-time high in January, said that the value of Bitcoin might drop to $1200.
“Crypto won’t have any friends at that point. Even the crypto die-hards might start to think they are done with it,” Brandt said.
At press time, Bitcoin is trading at $3709 and has a market cap of $64.8 billion. Its trading volume stands at $5.5 billion with circulating supply of 17 million, according to data from CoinMarketCap.