- The price of bitcoin has behaved similarly to stocks since the war broke out.
- Willy Woo believes that the value of cryptocurrencies will fall until there is a demand for them.
The analyst Willy Woo announced the end of his Bitcoin (BTC) bulletin, warning of bearish forecasts for the price of the cryptocurrency. The situation came as a surprise to the more than 10,000 subscribers who have been receiving the report regularly since its creation in 2020.
In his latest release, the analyst says bitcoin has been closely correlated with stocks in recent weeks. Some assets have been very shaky since the growing tensions between Russia and Ukraine. "War has broken out and that's the biggest impact on cryptocurrency prices," he said.
Willy Woo warned that the rapid 10% drop in cryptocurrencies since the start of the war and the recovery that has occurred since then indicate uncertainty in the market. He noted, "Signals don't tell us much about future price action in such unusual times, at least not in the short term."
As you can see, there was an immediate sell-off in bitcoin and stocks at the beginning of the Russian invasion of Ukraine. Analysts say this only happened when the cryptocurrency was structurally bullish because there was short-term buying demand.
In blue, you can see how the price of bitcoin fluctuated in a similar way to stocks in the early days of the Russian-Ukrainian war, with the green code SP500. Source: Willy Woo newsletter.
In fact, CriptoNoticias commented that Willy Woo said at the end of January that the price of bitcoin could rebound higher in the near future. That prediction fell short due to the economic impact of Russia's surprise attack on Ukraine, which he reckons took the market by surprise.
Holders are selling bitcoin at low prices
Willy Woo said bitcoin is at extremely oversold levels, although it has gone through some periods of increased holding during this period. This suggests that the market tends to be resistant and that the initial sell-off appears to be complete, he said. Unless a new and unexpected political situation arises.
However, the level of buying is not enough to push prices higher. Therefore, Willy Woo believes that cryptocurrencies will see a bearish trend in the coming weeks until there are signs of demand returning to the market. Nevertheless, imagine that after reaching lower lows, buying will increase and a bullish cycle will begin.
There is no doubt that we are in a bear market due to the length of the sell-off. Bitcoin bear markets never bottom without a capitulation event, so I think there is a good chance that this phase will be broken and we will test lower lows before the increase happens to build the next bull cycle.Bitcoin analyst Willy Woo.
Willy Woo will no longer send out his bitcoin analysis and prediction newsletter
With this bearish prediction, Willy Woo bid farewell to his readers in the newsletter, announcing that this would be his last issue. Although he later released two more updates as bonus tracks, reiterating that he still believes the price of cryptocurrencies will fall in the coming weeks.
The analyst explained that he will end the announcement because the maturity of the bitcoin market has made it increasingly difficult to predict future price movements. "I will always value the integrity of my work over income," said the analyst who submitted the paper for a subscription fee.
However, he said he will launch a new project this year to continue contributing to bitcoin retail investors and his nearly 1 million Twitter followers. a social network in which he used to share excerpts from his newsletter, much to the annoyance of some of his pay-per-view subscribers.