Just like any other industry out there, the cryptocurrency sector has been adversely affected by the Covid-19 pandemic and the resultant global lockdown.
This has led to on-chain analyst Willy Woo to suggest that the COVID-19 crisis was responsible for bringing the BTC rally at the start of the year to a standstill. He went on to argue that BTC was setting the stage for an exponential bull run before the coronavirus pandemic “killed the party”.
However, the effects the virus has had on the sector are not entirely negative. While the price of Bitcoin crashed in mid-March, it has since bounced back to its pre-crash levels to trade at $9149 during press time.
Investors Advised To Prepare For Near-Term Volatility
Woo went on to share the prediction model below, which suggests we are very close to another bull run.
For the past few weeks, BTC has contained within a narrow trading range, with charts showing a long sideways accumulation band.
Woo now predicts that BTC only has one more month of consolidation before the next full-blown bull market stage begins.
With the current BTC consolidation expected to continue before breaking out, investors should prepare for a spell of turbulence in the near-term.
Woo concluded by saying that the longer it takes before the new bull market arrives, the greater the chance of a higher peak price. When the next price crash occurs, investors should capitalize on the fear and panic-selling by accumulating as an enormous rally will likely follow.
Bitcoin is On a Bearish Trend
This past week, BTC started a notable decline after it broke the $9500 support. The flagship cryptocurrency gained bearish momentum below the $9300 support level, opening the doors for more losses.
The BTC price even broke the $9K support and formed a new monthly low near $8,813 before the price started correcting higher.
Looking ahead, if bitcoin struggles to clear the $9,100 resistance level, there is a risk of more losses, where a successful bearish break below the $8,800 support zone could open the doors for a larger decline. In this scenario, the bears are likely to aim a test of the $8,500 support zone in the near term.
On the bright side, if BTC breaks the trend line resistance at $9,100, it could continue to recover towards the main $9,300 resistance. Consequently, the bulls are likely to face a lot of hurdles near the levels of $9,100 and $9,300.