Bitcoin underwent a major price correction last week as it fell from around $48k to as low as $31k at one point before recovering above $38k. The move prompted many critics and skeptics to prematurely declare that Bitcoin’s long-term bull run had ended and the bear market has begun. However, many crypto analysts believe that there is still a lot of chance to go ahead with the bull run.
Popular Bitcoin analyst Willy Woo believes there is still some juice left in the bulls. In an interview with Youtube personality Peter McCormack, Woo was of the opinion that many macro indicators show price positivity for the cryptocurrency sector in general and Bitcoin in particular.
There’s an immense amount of activity on the network between investors compared to the valuation….,We haven’t seen any kind of mania….., We dumped down from a level which was highly organic — no speculative premium,” he said. “The 2017 top, for example, we were I think 3.8% higher than the organic evaluation.”
Woo believes that the recent crash is more because of a derivatives unwind that happened when the derivatives resulted in a lot of premiums and inorganic valuation. The downturn has wiped out most of the pump driven from the derivative boom and may result in organic recovery. Bitcoin reached as high as $65k in later April, but failed to break through the key level. Now the cryptocurrency is currently valued at around $38k, down 43% from its record high levels. Other cryptocurrencies have dropped even more sharply, resulting in a considerable market tank. Overall, around $1 trillion was wiped from the market over the course of the last 7 days.
Woo believes that Bitcoin is still likely to hit has high as $100k during this bull run alone. He also chatted with Cormack around a variety of subjects.
The move was triggered a lot of newbie traders to liquidate their positions and many reported a lot of losses. Elon Musk’s Twitter feed was also full of people who had invested in Dogecoin and other cryptocurrencies and incurred great loss. They held him responsible even though he explicity said that he hadn’t sold any of Tesla’s sizable Bitcoin stash and that he would HODL.
Analysts like Woo however acknowledge that it may take some time for the crypto sector to regain its earlier momentum because of the big crash.
Image source: Marco Verch Professional under CC
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