Crypto Expert Willy Woo Predicts Bitcoin Bottom is Close Using On-Chain Data – Here’s What You Need to Know

Source: Adobe/DedMityay

The common Bitcoin (BTC) and crypto on-chain analyst Willy Woo has predicted that the underside of the present Bitcoin bear market is shut, given the share of the BTC provide that is thought-about “underwater.”

Using his so-called “Max Pain” mannequin, Woo stated on Twitter this weekend {that a} macro cycle backside for bitcoin traditionally has been seen when 58% to 61% of the BTC provide is underwater, or held by buyers sitting on an unrealized loss.

Judging from Woo’s mannequin, that stage is now getting shut.

Asked by a commenter the place precisely the mannequin predicts the underside to be, Woo admitted that the worth might nonetheless fall additional, saying the higher a part of the shaded space of his mannequin is at $13,000 “and rising shortly.”

“Not all bottoms have hit, however for those who didn’t, they received shut,” he added.

Zoomed in view of the “Max Pain” mannequin. Green space represents cash held by Grayscale’s Bitcoin Trust. Source: Willy Woo/Twitter

Willy Woo’s “Max Pain” mannequin appropriately predicted the underside of the bitcoin bear markets in late 2018 and in 2015. In the bear market of 2011 – throughout bitcoin’s early years – the worth received pretty shut to the mannequin’s predicted backside worth, however didn’t hit it.

Failed predictions this 12 months

Back in March this 12 months, Woo predicted a “decoupling” between bitcoin and stocks, given his view that bitcoin fundamentals proceed to level in a bullish course regardless of “macro headwinds.”

With spot demand for BTC persevering with to climb, and a return to extra demand for bitcoin futures, the market is now “absolutely reset” and “accumulation has already occurred,” Woo wrote on Twitter on the time.

So far, Woo’s prediction a couple of bullish decoupling for bitcoin has – sadly – not come to fruition.

Recommended For You

About the Author: Daniel