The analyst believes that Bitcoin will drop to $ 8,500 before rising to $ 13,800

Well-known statistician Willy Woo thinks that Bitcoin's performance is gradually separating from traditional markets. The king is entering a long period of accumulation before any rebound.

Bitcoin is spun off from traditional markets

The first chart shows that both gold and BTC are separate from the S&P 500. Since the beginning of March, gold has fallen 12% to a 3-month low. Silver also fell even worse, losing 38%. While the stock market was blown away 30% in less than 1 month. Oil prices also had a similar situation, down 57%.

According to this analyst, gold and Bitcoin may be in the process of accumulating. The next chart shows the Bitcoin miners' energy index has returned strongly. A lot of energy is being poured into the network, and it's a sign of an upward price trend.

The health of the Bitcoin network

The expansion of the Bitcoin difficulty range after a period of contraction also shows the strength of the network is flourishing. While the position index of investors on the chain is also recovering.

With coronavirus epidemic situation is complicated, seriously affecting the global economic situation. As a result, the amount of money invested in high risk assets like Bitcoin will be limited. However, an accumulation from institutional investors is still possible. And that could be the momentum for recovery after halving.

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Financial stimulus policies contributed to the increase in Bitcoin price

Massive fiscal stimulus by central banks around the world also has the effect of raising prices on limited assets like Bitcoin. Because then, the legal currency will be inflated. Printing more money has never been a sustainable solution.

Bitcoin will probably experience short-term difficulties, but the long-term prospects are still bright.

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According to BeInCrypto
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