Notable cryptoanalyst, Willy Woo, has taken to Twitter to relay some slightly less than bullish news.
According to Woo, Bitcoin (BTC) could be on the verge of another dump thanks to a build-up of indecisiveness, exhibited by minimal long and short positions:
The last time the market was more indecisive was at the start of 2018. Zones of minimal Long + Short positioning have historically coincided with bearish price action during bear markets (opposite is true for bull markets). When undecided, "the trend is your friend" prevails. pic.twitter.com/xwAkXrqKI3— Willy Woo (@woonomic) March 3, 2019
Woo also posits that, “the trend is your friend” rhetoric that applies to a stock which has been hit heavily by a bear trend, effectively encouraging traders to wait for a bottom.
Woo also directs to a similar pattern which emerged during the January 2018 double top - a price formation at the end of a bull market typically indicating the start of a downtrend. Woo asserts that “peak indecisiveness” contributed to the bear market following the heights of the 2017/18 bull run
Interestingly in the Jan 2018 double top, peak indecisiveness did a phase shift. We went from "more bullish price action", to "more bearish price action"... an early warning that the trend had reversed, the start of the bear market had begun. pic.twitter.com/D2hhx0ftBk— Willy Woo (@woonomic) March 3, 2019
Essentially Woo believes that we’re heading for further dramas.
Yes, that's a good summary.— Willy Woo (@woonomic) March 3, 2019
One user questions Woo’s decision to formulate this theory based on indecisiveness alone:
Why would you make a decision based on one metric such as this?— dave the wave (@davthewave) March 3, 2019
However, the analyst conversely responded that this metric could actually spell the end of the bear season if proven wrong:
Yes, could also support the idea of an end of bear market / reversal if it doesn't play out. But mainly it's a trading signal. I'd want a bevy of long range fundamental indicators (on-chain based) to agree before calling a bottom. Not quite there yet, but getting a lot closer.— Willy Woo (@woonomic) March 3, 2019
Interestingly, a recent analysis of the BTC price indicates that the bottom is in fact in. According to the 50-week moving average (MA) has dropped below the 100-week MA, which confirms a 'bearish crossover'; something which typically indicates that selling pressure has been exhausted.
Of course, BTC bottoms have been called throughout the bear market, the only real indicator of a true reversal will be time.
Chepicap is here for you 24/7 to keep you informed on everything crypto. Like what we do? Tip us some Satoshi with the exciting new Lightning Network Tippin.me tool!
According to Woo, Bitcoin (BTC) could be on the verge of another dump […]