In the fourth quarter of 2020, Bitcoin is expected to strengthen, but a large-scale expansion will begin next year. So says famous analyst Willie Wu, who posted on Twitter a series of posts in which he analyzed the medium-term prospects of the largest digital currency. The cryptocurrency market is now experiencing record low volatility.
This is one of the few times in my Bitcoin career where the fundamentals (on-chain data and metrics from infrastructure players) are in moon mode, yet the market is not woke to it. They will be by 2021. This is an opportunity I've not seen since mid-2016.— Willy Woo (@woonomic) October 7, 2020
According to the CoinMetrics team, this figure fell to its lowest level since the fall of 2018. But already in the fourth quarter, an increase in the range of BTC price fluctuations is expected. Moreover, the chances for strengthening are higher than for weakening the positions of the cryptocurrency.
Willie Wu compared the current market situation with the situation in 2016 and concluded that we would repeat the race, taking into account the scenario four years ago. The awakening will begin in 2021, but the first positive signals will appear later this year.
Note that back in September, Willie Wu predicted that soon Bitcoin would completely separate from traditional markets. BTC is a tool for protecting capital from inflationary risks. That is the main advantage of cryptocurrency, which will lead to the cancellation of its dependence on stock indices, primarily on the S&P 500.
Willie Wu's concept is supported by data on the growing network activity on bitcoin.
The Glassnode team recently released a graph showing that the number of Bitcoin addresses transacting has been increasing daily since 2016.