Bitcoin may not be done with its bull run just yet.

The price of bitcoin had been increasing nicely over the past few weeks.

After making a low in late June down around $5,800, prices had rallied as high as $8,400. A gain of almost 50% off those lows.

Now we are seeing prices pull back rather significantly.

After hanging around $8,400 for a few days, the rug seems to have been pulled out and prices have fallen all the way back to $7,500 even quicker than they went up.

(Source: https://coingape.com/bitcoin-hash-rate-on-all-time-high/)

What gives?

Like many rips and dips in the crypto markets, it's not entirely clear what has caused the drop.

Some of it could have to do with Bithumb losing its banking partner, some could have to do with the Winklevoss ETF getting rejected, and some could even have to do with the phases of the moon.

(just kidding about that last one)

Either way, the cause isn't really known at this point, but the result is still the same. Lower prices than we had just a few days ago.

One crypto analyst says this downturn is not unexpected at all.

(Source: https://twitter.com/woonomic)

Willy Woo is a veteran crypto analyst that correctly predicted back in May that bitcoin prices likely still needed to head lower (when prices were over $7k). He said that prices likely would get down around $5, 500-$5,700 before they bottomed.

Though he followed that up with saying that prices likely would not break the $5k level, even though some analysts were calling for bitcoin to reach $4k, $3k, and even $2k.

He was pretty close as prices eventually got down to around $5,800 before starting this recent rally.

Yes I know he has a funny name, but he has been pretty good at predicting prices and trends in the past.

What is Willy Woo saying now?

Mr. Woo (can I call him that?!) recently said that while most people seem to be bullish about bitcoin, he actually thinks we are going to see a dip first...

Saying:

"Interesting to see most think BTC will moon. I think BTC will flash dump, then moon afterwards, just like with Gold in WFC 2008. Flight to safety: everything else sells off to USD, then used to unwind leveraged positions, then afterwards havens like Gold and BTC have a bull run."

He followed that up with this:

"Probably also contingent on how many institutional players are in the BTC market over that period. Normal retail HODLers won’t tend to have large leveraged positions to unwind from, apart from maybe mortgages."