Although several bulls including Fundstrat’s head of research Tom Lee and John McAfee expressed optimism regarding bitcoin’s short-term growth, it is highly possible for the bitcoin price to drop up to $6,000, according to crypto-assets analyst Willy Woo.
“I think we are gonna go to $5500-5700 next, I can’t see $7000 holding. Most likely we’ll balance a bit, then we’ll slide through. Long timeframes here, looking into June for rough timing of this to play out at a best guess,” Woo said.
Founded on an exaggeratedly strong downhill trend, high NVT signal plus volatility, Woo believes it is impossible for bitcoin to register a major bounce from its current level back to the $8,000 level.
Ari Paul, Blocktower co-founder and crypto investor, raised a similar point a few days ago, saying that due to the current period of low volume consolidation, a sudden increase in volume and price is not expected.
“Always a good bet for vol to mean revert, but this has been a low volume consolidation which is a much weaker setup for explosive moves than a high volume consolidation,” he explained.
Bitcoin’s, as well as the entire cryptocurrency market’s, volume have remained quite low since mid-May, when bitcoin’s price started falling after barely breaching the $10,000 level. Bitcoin’s volume has remained significantly low since May 24.
Following bitcoin’s trend since January, it is possible for bitcoin’s price to bounce from the $6,500 level in the short-term. However, analysts foresee bitcoin dropping below the $6,000 level, especially if the market fails to regain its volume soon enough.