Analyst Willy Wu is inclined to believe that the Bitcoin exchange rate will no longer return to the level of $ 6,000, at least in the near future. The trader associates his theory with his new technical indicator, which was called the “BTC difficulty tape”.
Wu claims that the capitulation of miners, which he expects in 2020, along with the BTC halving next May, will trigger the growth in the value of the flagship cryptocurrency. In a conversation with trader Ton Weiss, Wu explained that the BTC difficulty tape unfolded in December last year when BTC reached $ 3,200. Then Wu began to realize that this was a signal that a bull trend had started. He believes that some people think that BTC is now in the middle of a bearish trend. Wu noted that the surrender of miners will be supported by another in 2020, as well as a decrease in BTC emissions – for these reasons, a serious depreciation of the cryptocurrency is unlikely.
Willy Wu introduced his new indicator last week. The BTC difficulty ribbon indicator takes into account the behavior of miners when forecasting changes. He explained that when “the tape goes down” is a signal that BTC can be purchased. The Wu ribbon consists of simple moving averages of BTC mining difficulty, so you can easily track this indicator.
Introducing the Bitcoin Difficulty Ribbon. When the ribbon compresses, or flips negative, these are the best time to buy in and get exposure to Bitcoin. The ribbon consists of simple moving averages on mining difficulty so we can easily see the rate of change in difficulty. pic.twitter.com/6kBz4sLG1d
Willy Woo (@woonomic) August 1, 2019
Wu also noted that after the publication of the new indicator, some traders confirmed that earlier they also took indicators of the activity of miners in making forecasts of the movement of the course, but preferred not to talk about it.
