Willy Wu: Bitcoin will not repeat the scenario 2014
Known in krypterade investor, trader and analyst Willie Woo (Woo Willy) believes that correction of bitcoin in 2018 will not repeat the collapse that occurred in 2014.
According to Wu, the current structure of the market of cryptocurrency exchanges is significantly different from what it was four years ago.
In 2014, bitcoin has survived the worst correction in the history. The price of bitcoin has fallen by 90% and remained low for several years until 2017.
Historically, the bitcoin was required from one to two years to recover after major corrections. On this basis, some experts believe that cryptocurrency will not be able to resume its growth by the end of 2018.
While Wu notes that in 2014, the BTC correction was reinforced by the bankruptcy of the largest exchange Mt.Gox, which at that time occupied a dominant position on the market of bitcoin is to the site accounted for 90% of world trade BTC for extremely weak systems of internal control and almost absent security measures.
In the end, Mt.Gox hacked for a billion dollars and declared bankruptcy, the stock market collapsed, and it took bitcoin two years to recover.
In 2018, the market situation is different, but bitcoin is much healthier than in 2014, according to Wu.
“Another look at long-term recovery. Bearish sentiment in 2014-2015 contributed to the purification of the collapse of Mt.Gox, where trading 90% of the world total. Plus 1/8 of all bitcoins were stolen. Plus inflating prices using Willybot. In the system plan 2018 bitcoin is much healthier than bitcoin in 2014.”
February BTC tested the level of $6 000 three times and all three attempts the price of the cryptocurrency did not fall below $5 500. This suggests that the bear market is gradually eroding.
In addition, in August, the volatility of bitcoin prices is the lowest in the last 14 months. This is consistent with the trend according to which bitcoin remains stable for approximately two months before a major rally in upward direction.
Market conditions in 2018 is fundamentally different than in 2014. Besides in the market there are variables, such as the possible approval of a bitcoin ETF, which is able to instantly change the trend of movement of the main cryptocurrencies, said Wu.