Prominent cryptocurrency analyst and researcher, Willy Woo predicts that Bitcoin will bottom out in the second quarter of 2019, CCN reports.
Putting together the blockchain view, I suspect the timing for a bottom may be around Q2 2019. After that we start the true accumulation band, only after that, do we start a long grind upwards.— Willy Woo (@woonomic) November 13, 2018
Woo’s blockchain indicators also suggest a bearish short-term trend for Bitcoin and, worse still, this trend is likely to spread throughout the rest of the market as well.
“This last reading of our blockchain and macro market indicators is still in play. What has changed is that NVTS has now broken its support, typically a sell signal,” Woo explained. “All our blockchain indicators remain bearish. NVT, NVTS, MVRV, BNM, NVM. They are experimental but have served to make very correct calls to date, even when traditional on-exchange indicators were reading to the contrary.”
CCN explain the NVT Ratio (Network Valuation divided by the Transaction Value) as a new valuation indicator developed by Woo to measure Bitcoin’s valuation by taking blockchain activity into account.
NVT, when used with other indicators, allows Bitcoin’s trend to be measured in several areas. Something traditional indicators are unable to do.
Woo’s indicators suggest that BTV will hit its lowest point in Q2 of 2019. From then, if it begins an accumulation phase, BTC will begin picking up, leading to a strong mid-term rally seen in 2014 and 2017.