Bitcoin Price to Bottom at $5,700 in Short-Term Before Recovery: Analyst
Willy Woo, a respected cryptocurrency, and digital asset analyst, recently stated that the bitcoin price might likely fall below the $6,000 mark in the short-term.
Recent Market Struggles
Since mid-May, ever since the bitcoin price failed to test a major support level at $10,000, the cryptocurrency market has been on a continuous decline. The vast majority of tokens and small cryptocurrencies have followed the price trend of bitcoin and Ethereum. On both the upside and downside, the price movement of tokens intensified, recording larger drops than bitcoin during minor corrections.
On May 25, Woo noted that the bitcoin price would likely dip below the $6,000 level and test $5,500 to $5,700 as a long-term support level. In previous reports, CCN noted that the $6,500 mark is an important resistance level which bitcoin has been able to bounce off of since early January.
In the short-term, it is likely that bitcoin falls below $7,000 and test the $6,500 resistance level and the failure to remain above that level will likely send bitcoin to the lower end of $6,000 and potentially to the higher end of $5,000.
Woo named four major reasons to support his call:
High NVT signal
High volatility
Standard NVT overly high
Volume Profile cliff below $6,800
“NVT Signal is still too high. We need more blockchain transactional activity to justify the current price, or the price to drop to reconcile the difference. To drive up transactional activity in a bear slide is very unlikely. Volatility is still too high. I’m looking for a sustained low band of volatility which tends to be a signal for the end of the detox and the next accumulation phase. It’s still got some time to ride down,” said Woo.
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