Explanation is by analyst Willy Woo
Of the lows recorded in mid-March, Bitcoin (BTC) appreciated 120% at the time of this writing. Even so, cryptocurrency has not registered a steady upward trend. In fact, BTC has been stuck in a series of side trades in the past three months, despite showing signs of an upward trend as it rose to $ 10,000.
Now the well-known analyst Willy Woo is noting that the COVID-19 crisis that devastated the world was the key factor that caused the BTC rally to stop. But it is not all doom and gloom: Woo believes we are not that far from another bull market.
COVID-19 interrupted the Bitcoin bull run in its tracks
On a Twitter topic on June 27, Willy Woo presented a new model that can identify the start of big bull runs. He went on to say that the BTC was setting the stage for an exponential race before the coronavirus pandemic “killed the party”.
However, the model also suggests that we are very close to another bull run. In particular, BTC could have just another month of consolidation before the next full phase of the bull market begins.
This is a new model I’m working on, it picks the start of exponential bull runs.
1) Bitcoin was setting up for a bullish run until the COVID white swan killed the party.
2) This model suggests we are close to another bullish run. Maybe another month to go. pic.twitter.com/wmoEdMVywF
– Willy Woo (@woonomic) June 27, 2020
“This is a new model that I’m working on, which foresees the start of exponential bull runs.
1) Bitcoin was preparing for a bullish run until COVID killed the party.
2) This model suggests that we are close to another bullish run. Maybe another month to go. ”
The longer the consolidation, the bigger the next price peak
Woo also joked that the fact that BTC is contained in a narrow trading range is not completely down. On the contrary, a long range of lateral accumulation is really a good thing. He explains that the longer it takes before the new bull market arrives, the greater the chance of a higher price spike.
To quote you directly:
“The longer this rising market takes to start, the higher the peak price will be (Top Cap model). A long range of lateral accumulation is ultimately a good thing. “
With Willy Woo’s analysis predicting further BTC consolidation before rising within a month, investors should prepare for a strong outbreak of turbulence in the short term. Simply put, when the next price drop occurs, they must capitalize on the accumulating fear, as a gigantic rally is likely to occur.