According to a top cryptocurrency analyst, Willy Woo, Bitcoin may go lower than $6000 before an upward correction is attempted in the near term.
Bitcoin Faces a Lot of Hurdles
Things haven’t been good for Bitcoin since Mid-may after it failed to test the $10,000 major support level. The price has been on a continuous decline. Bitcoin isn’t the only cryptocurrency suffering. Most cryptocurrencies have followed the downward trend set by Bitcoin and Ethereum. All tokens on the downward slope recorded an intense drop in price.
Bitcoin Will Sell Below $6000?
On the 25th of May Willy Woo said that the price of Bitcoin is most likely to fall below $6000. He said it may be as bad as testing $5,500 to $5,700 as a support level long term.
BTC may fall below the $7000 mark short term and it may test the significant resistance of $6500. If it fails to remain above that level, it will go lower towards $6,000 and may get to the higher end of $5000.
High NVT Is the Culprit
According to Woo, the standard NVT signal is too high. In his words: “More blockchain transactions need to be recorded because the current NVT signal is on the high side. However, increasing transactional activity when the bears are in charge of the market is unlikely. The price volatility is too high. We need sustained low band volatility that will bring about the end of this phase and the beginning of a new, accumulation phase”.
The NVT signal is used by analysts to evaluate the price of Bitcoin.
Although it is not likely that the BTC price will drop below $5000, Woo believes that the price will not be able to hold above $7000 in the short term. A drop below $6000 is inevitable according to Woo.
The intensity of the fall in price since December 2017 indicates that the cryptoverse may not experience the same price correction trend as it did in 2014 according to Woo.
“I am guessing that there will be a slow bleed to $6800 and then a steeper slide all the way to $5700 before a leveling out and a flat zone will be reached. This is my educated guess based on fundamental framing of data and volume profile.”