Low Bitcoin transaction volume will perpetuate the bear market, says analyst

06 Jan, 2019 | Updated: 06 Jan, 2019
by Will Heasman
Price Analysis
Low Bitcoin transaction volume will perpetuate the bear market, says analyst

Despite a myriad of positive movement and bullish sentiment, along with technicals which echoed the same, one analyst suggests that the bear market is far from over, due simply because of low transaction volume.

Willy Woo, an independent crypto researcher, and analyst has posited that the Bitcoin bear market is currently inescapable due to a lull in on chain volume:

Woo is likely referencing the technicals exhibited from the GTI Vera Convergence Divergence indicator which suggested that BTC was in the midst of a buying streak. 

Woo asserts that this streak provided a “false” signal to the end of the bear market adding that an increase of trade volume was a “side effect” of volatility rather than volume accumulation.   

The analyst continues to state that volume has since subsided:

NVT refers to Network Value to Transactions (NVT) a ratio (developed by Woo personally) which measures the network value of a cryptocurrency in relation to its transaction activity, in theory, revealing whether said crypto is over or undervalued. In this instance, based on Woos analysis the probability of upward swing in price movement is unlikely.

Read more: According to Tone Vays there's 70% chance that Bitcoin hasn't hit a bottomBull run soon?: Crypto technicals indicate 'buy' signal

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