It’s arguable whether we should take history as an indicator of future events. However, it’s also definitely worth considering it. A very prominent analyst has pulled off a lot of information on Bitcoin’s on-chain metrics, which shows that we might actually be in the early phase of an upcoming large bull market.
Large Bull Market Ahead?
Willy Woo is one of the well-known Bitcoin on-chain analysis with a massive following on Twitter. He is popular for his in-depth analytics and also for conceptualizing the Bitcoin NVT Ratio.
Now, he has come up with another set of interesting data based on Bitcoin’s Volume Weighted Average Price (VWAP) Ratio.
Cheat sheet map of where we are in this bull market according to on-chain metrics. We’re closing up the opening act of the bull market, and awaiting the middle bull market to commence. pic.twitter.com/xkmY5i605G
— Willy Woo (@woonomic) September 21, 2019
According to his analysis, the world’s largest cryptocurrency might as well be in the fairly early stages of a large bull market which could end up seeing BTC’s price well above the previous all-time high (ATH).
Woo notes that “we’re closing up the opening act of the bull market, and awaiting the middle bull market to commence.” If history repeats itself, this means that we should see steady growth in Bitcoin before entering the phase where the former ATH is broken.
Another interesting thing to consider, while on the matter of historical data, is Bitcoin’s halving. As Cryptopotato reported previously, both previous halving events had caused Bitcoin to skyrocket in value. This is perhaps because of the basic supply and demand economic principles which dictate that if the supply for a certain asset is reduced while its demand remains the same or increases, its price should go up.
Chaos In The Meantime
As there are no precise indicators on Woo’s data as to where exactly we are in time throughout the current bull market, we can see that prices are all acting kind of crazy.
Just today, Bitcoin dropped to as low as $9,500 on BitMEX which marked an immediate plunge of more than $500.
What’s more interesting is that this dump happened 2 days before Bakkt’s Bitcoin futures platform will launch. And, as we have already seen it in history, the most prolonged Bitcoin beark market took place after CME launched futures contracts back in 2018.