Professional analyst and trader Willie Wu surprised herself and strangers, who were surprised by the change in approach to the previous cycle.
On this occasion, experts did not venture to predict that by the end of 2021, the price of Bitcoin (BTC) would reach $200,000 or $300,000, as was the case in 2020.
Even now, three years later, Bitcoin is about $120,000, far from these predictions, as seen on crypto pricing calculators.
Now, Woo has adopted a more cautious attitude, saying, “Is it the main purpose of the cycle? What’s important is the X-axis, and everyone is looking at the Y-axis.”
What Woo means is that most people only pay attention to how much the price (y-axis) rises, but he focuses on the X-axis (time) as he tries to detect when liquidity begins to emit.
In response to the consultation of one of his followers, the expert expanded the paper, saying:
This comment from WOO is important as it reinforces the central idea of that change. Instead of trying to give an accurate number, we focus on metrics that show how the price of an asset evolves as time goes on.
But why does liquidity act as a true mattress in the market? If it’s high, there are many active buyers and sellers. This allows you to run operations without sudden price movements, providing stability and supporting a more orderly progress.
On the other hand, low liquidity, with few participants or capital, even small movements can cause strong vibrations, increasing volatility and instability. Therefore, focus Liquidity allows you to predict trend changes before they are reflected in prices.
During the discussion, one of his followers reminded him that he shared similar thoughts about other opportunities. “I said a lot while I was learning. Some are right, others are wrong. Most are randomly determined. What’s crazy is that people think it should be perfect as if it were an oracle, and I think others have to be wrong with everything I say.”
In this way, he proposes to pay attention to other signals beyond the prices of the currency created by Nakamoto at.
(tagstotranslate) bitcoin (btc)
