In a recent tweet, Woo revealed that he is currently tracking on-chain transaction volume volatility as an indicator. However, he believes the current data points to more pain ahead as the transaction volumes are very sporadic, which indicates that true capitulation has not yet occurred.
Is the bottom in? Not yet.
In order for the bottom to be in, the volume of coins changing hands becomes steady, currently it's very erratic, synonymous with middle of the bear detox. (In this chart I'm tracking the volatility of on-chain volume). pic.twitter.com/aVYI1Ortxh
— Willy Woo (@woonomic) January 14, 2019
Woo does not provide any additional commentary as to why he sees this indicator as a necessity for a bottom, but he does compare several other potential indicators and even offers up this bullish analysis that utilizes Bitcoin’s “realized value” as a possible alternative.
That being said, Woo isn’t the only analyst who thinks Bitcoin has more to drop. Tone Vays, the former Wall Street trader turned popular crypto analyst, recently revealed that he’s around 85% sure that Bitcoin hasn’t hit it’s bottom yet.
Other figures include seasoned futures trader Anthony Grisanti, who he sees Bitcoin falling below $3,000, ultimately driving more investors to close their long positions, and veteran technical trader Peter Brandt, who thinks Bitcoin will test the $3,000 psychological level and head toward $1,200 by the end of Q1 2019.
More: Willy Woo’s Tweet
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.