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Willy Woo’s Bitcoin Difficulty Ribbon Suggests Drop Below $6,000/BTC “Very Unlikely”

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Willy Woo believes we may never see another $6,000 Bitcoin again.
Willy Woo believes we may never see another $6,000 Bitcoin again.

Willy Woo’s Bitcoin Difficulty Ribbon Suggests Drop Below $6,000/BTC “Very Unlikely”

On-chain metrics analyst Willy Woo believes we may never see another $6,000 Bitcoin again. The trader bases his theory on his latest technical indicator, the Bitcoin Difficulty Ribbon.

Woo argues that a miner capitulation he expects to see in 2020, along with the halving of Bitcoin supply next May, will “add more fuel to the bull market.”

Woo: Reducing Numbers of Bitcoin Hitting Market Will Fuel Current Bull Season

Appearing on former Wall Street trader Tone Vays’s Trading Bitcoin YouTube show earlier today, on-chain metrics analyst Willy Woo delved deeper into his recently-detailed Bitcoin Difficulty Ribbon indicator.

He commented on how the Bitcoin Difficulty Ribbon inverted at around the December 2018 $3,200 Bitcoin low, saying that this is a clear signal to him that the bottom has been reached:

“To me, this is extra confirmation that we are in a bull season… It’s less now but some people still think we’re in a mid-bear season rally, and it’s a B-wave, and we’re going to come back down.”

Woo continued, stating that for him, the indication that the miners have recently capitulated, along with a further capitulation he is expecting in summer 2020 and the halving of the Bitcoin supply, will make it unlikely that the Bitcoin price will drop in any serious way from its current level:

“It’s very, very unlikely that price is ever going to come back down below accumulation bottom. Very unlikely. Even to $6k given this particular setup. I’m just speaking for the long-term macro picture.”

Woo went on to comment that following his recent publishing of the Bitcoin Difficulty Ribbon indicator on his personal website, a number of traders had hinted that they had already been using the activities of miners as an indicator for their trade and that now their secret was out.

Elsewhere in the show, Woo admitted that his Bitcoin NVT indicator, a measure of total network value divided by daily transaction value, detailed many times by the trader, is now a little “sloppy” because of the changing market.

For Woo, the fact that increasing numbers of people are holding Bitcoin on exchanges reduces the efficacy of the NVT indicator. Woo actually estimates that more than 6 percent of all Bitcoin mined to this point is sitting on exchanges. Although these funds are frequently involved in an activity which impacts the Bitcoin NVT, the trades are not registered as economic activity on the blockchain since coins are kept in cold storage and account balances are simply updated to reflect trade outcomes. This increases the NVT artificially:

“We’re definitely in a bull season right now and you would expect NVT to drop… but it’s not… So much has gone off chain now that it’s hard to get that trading signal.”

The trader went on to state that although he rarely used the NVT indicator to influence buying or selling decisions, he did find the macro picture detailed above most illuminating.

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Crypto Angel Investor Issues Warning to Bitcoin Maximalists

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Crypto Angel Investor Issues Warning to Bitcoin Maximalists

#CryptoAngel Investor Issues Warning to #Bitcoin Maximalists

At the end of 2017 and the height of the crypto hype bubble, investors seeking ‘the next Bitcoin’ bought up altcoins en masse after learning that many alts, such as Etheruem, Ripple, and Litecoin, had spiked over 1000% and outperformed even Bitcoin.

But the bubble popped, both Bitcoin and altcoins fell over 85% to lows most never saw coming, leaving investors with heavy bags. In 2019, Bitcoin has risen steadily while altcoins have suffered – and it’s caused a new wave of BTC “maximalists.” However, one analyst cautions that this is not the wisest practice, and could cause crypto investors to miss out on a diamond in the rough.

Altcoin Capitulation and Safe-Haven Narrative Has Created New Wave of Bitcoin Maximalists

Capitulation, fear, and despair have permeated throughout the altcoin market throughout the second half of 2019 thus far, even since the asset class diverged from the usual correlation with Bitcoin, and bled out relative to their BTC ratios.

The leading crypto-assets parabolic rally seems to have sucked the life and capital out of the altcoin market, and the sentiment is at the point of extreme fear and panic. It’s caused even the biggest altcoin supporters to consider turning into a BTC maximalist at an alarming rate.

Bitcoin maximalists believe that only Bitcoin will survive as financial technology and that there isn’t a reason for most altcoins in the market to exist at all. Most are anti-altcoins, while others just prefer to avoid them at all costs.

Early crypto investor Arianna Simpson, however, says that being a BTC maximalist is a “foolish” decision.

The founder and managing director of Autonomous Partners say that while Bitcoin may have outperformed altcoins year-to-date, crypto investors shouldn’t assume this “will always be the case.”

Simpson reminds the crypto community of the hive mind recency bias, and the fact that there was once a time where Bitcoin “was old news” and Ethereum outperformed Bitcoin by a wide margin.

“…Given the numerous high caliber of teams who are building crypto networks, I think it is incredibly unlikely that over a period of several years the entire rest of the market amounts to nothing,” Simpson explained.

Bitcoin maximalism isn’t just so prominent suddenly due to altcoins capitulating, it’s also due to Bitcoin’s recent narrative change from a store of value, to a safe-haven asset in the face of growing economic turmoil. With the stock market and others crashing due to a fear-driven sell-off, investors are likely even more averse to the added risk that altcoins carry. Bitcoin, while also a volatile cryptocurrency, is the least risky of the bunch, given its network growth, acceptance from regulators, and longevity in the marketplace. The reduced risk perception makes Bitcoin the logical choice for crypto investors scorn by past bear pressure and fearful of what might happen to the asset class if the economy does collapse.

Crypto Angel Investor Issues Warning to Bitcoin Maximalists

Crypto Angel Investor Issues Warning to Bitcoin Maximalists

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Erik Finman Claims His Crypto Will Crush Libra And Replace Bitcoin

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Erik Finman Claims His Crypto Will Crush Libra And Replace Bitcoin

Erik Finman Claims His Crypto Will Crush Libra And Replace Bitcoin

#Crypto millionaire Erik Finman says #bitcoin “is being replaced” by #Facebook’s #Libra. But he insists his #cryptocurrency, Metal Pay, is the “Libra Killer.”  The 20-year-old entrepreneur made the ballsy claims in a blog post at Wall Street Playboys. Moreover, Finman boldly declared that his Metal Pay platform could supplant both bitcoin and Libra.

Finman says the reason why BTC will go extinct as MySpace did is that its adoption has stalled irretrievably.  In addition, he warns that Facebook’s Libra is aggressively coming to crush bitcoin. That’s exactly what the social media monopoly did to its early competitors.

“Much like Myspace was replaced by Facebook, it looks like Facebook’s Libra ‘cryptocurrency’ is trying to do the same to Bitcoin. If you’re someone who believes in cryptocurrency and what it represents, Libra is your worst nightmare.”

He then went on to say:

“Bitcoin’s adoption has stalled, and the barrier to its continued growth appears too tough to crack. This isn’t necessarily about its value as an #investment – being treated like ‘digital gold’ is fine for a cryptocurrency that is seen as a way of getting rich – but more about Bitcoin’s use as an actual currency.”

Finman says continued regulatory murkiness about whether BTC is a commodity or a currency has damaged its viability as a mainstream investment.  Because of this lack of clarity, Finman says bitcoin is languishing in “this weird middle ground,” where it can be used to make purchases, but is often viewed as a store of value.  This ambiguity has also raised the hackles of the IRS, which recently sent 10,000 threatening letters warning crypto investors to pay their taxes. This unfortunate image that bitcoiners have as tax evaders will inhibit further adoption, Finman says.  “As long as regulations are a mess, Bitcoin’s growth won’t move much,” Finman said. “If you want institutional investors to get on board, you need to make this less murky.”

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BITCOIN BROKE UP WITH ROGER

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BITCOIN BROKE UP WITH ROGER
A #Bitcoin Twitter account with almost a million followers has dumped #BitcoinCash in favor of Bitcoin itself – and everyone is trying to explain why.

BITCOIN BROKE UP WITH ROGER

A #Bitcoin Twitter account with almost a million followers has dumped #BitcoinCash in favor of Bitcoin itself – and everyone is trying to explain why.


@BITCOIN FINALLY PROMOTES BITCOIN AGAIN

In a seemingly random turn of events, @Bitcoin, one of the Bitcoin industry’s biggest misnomers, suddenly began promoting Bitcoin $10439.3 -1.89%, in line with its Twitter handle.

In addition to retweeting another tweet critical of Bitcoin Cash $10702.1 +0.37% and its main proponent Roger Ver, the account changed its Bitcoin whitepaper link from Ver’s Bitcoin.com website to its actual source, Bitcoin.org.

@Bitcoin had previously spent several years promoting BCH, using its coveted Twitter handle to fool observers into believing the altcoin was in fact Bitcoin.

Commentators assumed Ver had control of the account, but in April 2018, he denied this, claiming he nonetheless knew the real owner was pro BCH.

After @Bitcoin began changing its tune, Ver was forced to respond, but on Reddit seemed less than concerned about its activities.

Asked by another BCH user whether there was “anything we can do to save @bitcoin,” Ver simply replied, “Don’t know.”

MATTERS OF THE HEART?

This carefree attitude appeared to spark a wave of conspiracy theories on social media, which continues to engulf some of cryptocurrency’s best-known names.

Most focus on the tweet repeated by @Bitcoin, which in turn mentioned Ver’s Reddit exchange:

Some believe the account has legitimately passed to a pro-Bitcoin entity, while others remain suspicious.

According to Twitter user BTC Sessions, the new owner has begun messaging users in private, requesting the community removes blocks instigated due to previous BCH content.

Even Ver’s private life became fair game, with Litecoin creator Charlie Lee providing a tongue-in-cheek explanation for @Bitcoin’s sudden change of heart.

BCH, which forked off from Bitcoin in August 2017, currently trades at its lowest levels against the largest cryptocurrency in history.

What do you think about @Bitcoin’s change of behavior? Let us know in the comments below!

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