Bitcoin (BTC), Like Gold in 2008, Will “Flash Dump” But “Moon Afterwards” Says Expert Crypto Analyst

Omar Faridi
  • Bitcoin (BTC) will “have a bull run” after its value drops significantly due to a “flash dump”, says experienced crypto analyst Willy Woo.
  • Woo had accurately predicted on May 25th that BTC’s price would drop below $6,000.

Willy Woo, an experienced cryptocurrency analyst, had accurately predicted via Twitter in May that Bitcoin (BTC) would drop below the $6,000 mark before it would exhibit any signs of recovery.

Woo also noted in late May that BTC may not sustain the $7,000 price level. The crypto researcher remarked:

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 time-frames here, looking into June for rough timing of this to play out at a best guess.

“$5000s Is A Very Strong Support Band”

Woo had further predicted that BTC’s price would probably not dip below $5,000 within the same period. His comments on bitcoin’s price movements 

“I don’t necessarily think we’ll fall through the 5000s… sure it’s a possibility but it doesn’t have to. It’s not a repeat, it’s not Mt Gox and Willybot pushing up price with faked orders, we aren’t detoxing from a scam bubble. Technically $5000s is a very strong support band.”

On June 29th, BTC had fallen to its lowest value we’ve seen this year when it was trading at around $5,800-$5,900, according to data from CryptoCompare. Then about three weeks after hitting its low point, bitcoin’s price surged past $8,000 on July 24th.

Now though, it appears that this was fairly short-term bullish momentum given that BTC is currently trading well below the $8,000 mark at only $7,671.65 at the time of this writing. Notably this significant drop in bitcoin’s price took place in just 48 hours.

“Flash Dump” Ahead For BTC, But “Moon Afterwards”

Given current trends in the crypto market, Woo has now made some more predictions. He stated on August 1st that Bitcoin will likely drop further because of a “flash dump”, but “then moon afterwards, just like Gold in WFC [Wall Street Financial Crisis] 2008. Flight to safety: everything else sells off to USD, then used to unwind leveraged positions, then afterwards havens like Gold and BTC have a bull run.”

Woo also remarked that moving forward, bitcoin’s value would depend on whether institutional investors make substantial investments in the cryptocurrency market. The Forbes contributor said, “Probably also contingent on how many institutional players are in the BTC market over that period. Normal retail HODLers won’t tend to have large leveraged positions to unwind from, apart from maybe mortgages.”

Crypto Trading Tips From Willy Woo

Woo offered some advice on crypto trading as well:

When in bear, stay in USD as a base currency, then short (and long with extra care). When in bull stay in BTC and do vice versa.”

Notably, the veteran crypto investor often uses the NVT signal/ratio to predict bitcoin’s future performance.

The Standard NVT ratio is calculated by dividing Network Valuation by the Transactional Value on a blockchain network, and then “smoothed using a moving average”, according to Woo, who introduced it last year: "The moving average [is then applied] … to the volatile Transactions component only without smoothing the already stable Network Valuation component.”

Bitcoin Mining Pool Tries to Help Tone Vays Win $10K Bet Against Roger Ver

Cryptocurrency mining pool SlushPool has recently manually added a BTC transaction into a block to help Tone Vays, a derivatives trader and analyst, win a wager mage against BCH proponent Roger Ver.

The wager was made at the 2019 Malta AI & Blockchain Summit, during a debate between bitcoin (BTC) proponent Tone Vays and Bitcoin.com CEO and BCH advocate Roger Ver. In it, Ver argued BTC transactions are too expensive for business use due to the cryptocurrency’s small block size.

Vays, on the other hand, argued segregated witness (SegWit) and second-layer scaling solutions like the Lightning Network allow users to make small transactions without paying high fees, and that he has been using BTC on-chain without paying too much for transactions.

The debate ended up seeing Vays send Roger Ver $5 worth of BTC with a one satoshi per byte transactions fee – equal to the fees paid on the Bitcoin Cash chain – to see if it would confirm the same day. If it did, the CEO of Bitcoin.com claimed he would donate $10,000 to a charity of Vays’ choice.

During the debate, both parties noted the transaction was “priority 23,836 out of 24,355 transactions,” meaning that most transactions on the Bitcoin blockchain had to clear before miners picked that one up, at least according to fees paid for transactions.

As Vays soon noted on social media the transaction cleared after 10 hours. Some, however, found it strange. Cobra Bitcoin, the pseudonymous co-owner of Bitcoin.org and Bitcointalk, pointed out on social media that SlushPool – the mining pool that found the block the transaction was included in – manually added it to help Vays win the bet.

Cobra Bitcoin figured it wasn’t mined “naturally” as it was the second transaction included in the block – right after the coinbase transaction – despite the fee being less than 1% of that of all other transactions included in the block.

On Reddit, users pointed this out and accused SlushPool of manually adding the transaction. The mining pool, according to some users, is known for supporting BTC and being against Bitcoin Cash.

Should Roger Ver Pay?

The wager quickly became a controversial topic that seems to bring back memories of the scaling debate that was going on before Bitcoin Cash forked off of the Bitcoin network back in August of 2017.

Some argue that Roger Ver’s point stands as the transaction wasn’t “naturally” confirmed, but manually included in a block. Moreover the CEO of Bitcoin.com claimed he’d donate the money if it confirmed that day, and when the transaction did confirm it was past midnight in Malta.

On the other hand, some claim the transaction did go through anyway, and as such Roger Ver should donate the funds to a charity of Tone Vays’ choice. Moreover, Vays himself argued BCH supporters could have spammed the BTC mempool with two satoshis per byte transactions to stop his from clearing on time.

On Twitter, Vays created a poll that was retweeted by SlushPool and admitted the mining pool did prioritize the transaction. It currently shows most users believe Roger Ver should donate the funds. As one commenter pointed out, however, the results may change if Ver and other BCH supporters retweet the poll.