Analysts who had successfully predicted the cryptocurrency slump again predicted that Bitcoin will rebound sharply

A statistician who accurately predicted Bitcoin's rapid collapse in the global economic crisis now predicts a sharp rebound in prices.

Source: Pixabay

Analyst Willy Woo predicted in 2018 that investors would liquidate their leveraged bitcoin positions in search of USD security. He said the cryptocurrency is looking for the bottom.

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He tweeted at the time,

"We are now flying to a safe zone and BTC is looking for a bottom. But be aware that once it bottoms, it will face strong bullish pressure. Bitcoin is built in the economic environment in the next few years."

Last week, the bitcoin market was sluggish, and the spot price of this cryptocurrency suffered its worst day since 2013. Traders would rather lose money to close their positions because they are concerned about the uncertainty caused by the coronavirus pandemic. This unstable liquidation has reduced Bitcoin's net valuation from about $ 190 billion to as low as $ 83.57 billion.

The plunge has disappointed most investors / speculators, who believe that Bitcoin is their guarantee against a stock market crash. Well-known market commentator Alex Krüger said on Tuesday that Bitcoin is neither a value store nor a hedging tool.

Acquaintance with gold

Mr Woo believes that during the bursting of the real estate and credit bubble, Bitcoin behaved like gold. Although the stock market crash increased the chance of gold as a safe-haven asset, gold plunged by 33.96% in 2018. However, investors turned to other unconventional hedging assets, mainly the US dollar.

Gold hit a bottom of $ 681.75 in October 2018, followed by a steep upward trend, and its value rose to $ 1,703.60 in early March of this year. Nonetheless, the selloff caused by the coronavirus prompted this metal to rebound by as much as 14.80%. It looks like Bitcoin plummeted in a similar way.

Woo reminds investors:

"Safe Flight: All other products are sold in U.S. dollars. [Then] it is used to close out leveraged positions. After that, there have been bull markets in safe havens like gold and Bitcoin."

Bitcoin Black Swan

Some of Woo's old predictions also mention the Black Swan incident and its impact on the price of Bitcoin. The analyst said that we cannot guess future prices in the event of an unexpected event. Coronavirus has proven to be a black swan incident.

Woo noted that Bitcoin is in its first macro bear market due to an unexpected virus epidemic. This leaves analysts with little data to discover their prices in the short or long term. Still, the statistician said that a decline in investor confidence in the banking industry would at least push millennials to decentralized assets.

Woo says:

"This crisis is a catalyst for this heartbreaking consequence. The $ 680 trillion in wealth is now accelerating to Millennials. Millennials love cryptocurrencies and can move the market without spending a lot of money."

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