BTC Analyst: Bitcoin’s Fundamentals are in Moon Mode – Ethereum World News

Quick take:

Veteran Bitcoin Analyst, Willy Woo, has shared his most recent analysis of BTC in which he states that all Bitcoin fundamentals are in moon mode.

According to Mr. Woo, Bitcoins on-chain data and metrics from infrastructure players point to BTC awakening in 2021. He explains that the current Bitcoin market environment is similar to mid-2016 and before the impressive bull run that resulted in BTCs all-time high of $20k in December 2017.

Mr. Woo shared his analysis of Bitcoin via the following tweet.

Back in late Septemeber, Will Woo had also suggested that Bitcoin is in the process of decoupling from the traditional stock markets as a result of Bitcoins internal adoption. He explained:

Bitcoin will decouple from traditional markets soon, but driven by its internal adoption s-curve (think startup style growth) rather than changes in perceptions as a hedging instrument by traditional investors. Fundamentals of user adoption have already broken all time highs.

To further demonstrate the said Bitcoin internal adoption, Willy Woo shared the following chart, courtesy of Glassnode, which shows the number of active Bitcoin addresses since mid-2016, charted alongside price.

Additionally, Willy Woo pointed out that Q4 might be a great one for Bitcoin based on the compression of BTCs difficulty ribbon. To further demonstrate the probability of a great Q4 for Bitcoin, Mr. Woo shared the following tweet by the team at Glassnode which includes a chart that has the bullish difficulty ribbon.

Summing it up, Willy Woo has suggested that Bitcoins fundamentals are in moon mode with a possibility of a bullish Q4, 2020. Additionally, next year will also be a positive one for Bitcoin in terms of gains as the current Bitcoin environment is similar to mid-2016.

In terms of market performance, Bitcoin has now shrugged off a total of four mega-events that would have traditionally caused panic selling. The first was Bitmex being charged by the CFTC for operating an illegal derivatives exchange.

Secondly, President Trump tested positive for COVID19. Thirdly, the UKs FCA banned crypto derivatives from retail traders. Fourthly, President Trump rejected a stimulus bill late yesterday that caused a massive pullback in the stock market.

However, Bitcoin is still holding its head above $10k and is currently battling to retain the $10,600 support zone. If this were 2018 or 2019, Bitcoin would have already dropped below $10k and declared dead once again.