For Woo, the important thing is to see when liquidity begins to decrease.
To guess the price “is like thinking that noisy chaos must be ordered and predictable.”
Willy Woo, a professional analyst and trader, surprised own and strangers with a change of approach to previous cycles.
On this occasion, the specialist did not venture to predict that the price of Bitcoin (BTC) would reach 200,000 or 300,000 dollars, as did in 2020 by the end of 2021.
Even now, 3 years later, Bitcoin is about $ 120,000, far from those predictions, as can be seen in the cryptootic price calculator.
Currently, Woo adopts a more cautious posture and Point out: “The main objective of the cycle? The important thing is the X axis, while everyone looks 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), because he seeks to detect when liquidity begins to exhaust.
In response to the consultation of one of his followers, the specialist expanded his thesis and said: “The ceilings are unstable because the driving force, liquidity, disappears, and then volatility and irregularity increase as there is no liquidity matt act as it approaches. ”
This comment from Woo is important because it reinforces the central idea of its change: instead of trying to give exact figures it puts the focus on metrics that show how the price of the asset is evolving as time progresses.
But why does liquidity work as a true mattress on the market? When it is high, there are many active buyers and sellers, which allows to execute operations without the price moving sharply, offering stability and favoring a more orderly advance.
On the other hand, when liquidity is low, there are few participants or little capital available, and even small movements can cause strong oscillations, increasing volatility and instability. Therefore, focus on Liquidity allows anticipating trend changes before they are reflected in the price.
Amid the debate, one of his followers reminded him that he had shared a similar thought on other occasions. To which woo He replied: “I said many things during my learning; some are correct, others incorrect. Most are determined randomly. The crazy thing is that people think it should be perfect, as if it were an oracle, and others think that everything I say has to be wrong.”
In this way, he proposes to look beyond the price of the currency created by Satoshi Nakamoto and pay attention to other signals, which can offer a guide to make decisions in a responsibility and without being carried away by emotions.
