Saturday , February 4 2023

‘It will send BTC’ – The chain’s analyst says Bitcoin hodlers are strengthening


According to Willy Woo’s chain analysis, the price of Bitcoin (BTC) could reach a “conservative” target of $ 200,000 by 2021. It looks like long-time investors have more confidence in the last rally.

There are two important data that suggest that Bitcoin’s ongoing rallies may explode. First, “HODLers” or long-time BTC holders don’t move their funds for longer than in previous rallies. Second, BTC in exchanges continues to decline, which reduces sales pressure.

The re-accumulation phase of Bitcoin is taking place

The re-accumulation of Bitcoin will continue to be a steady upward trend throughout 2020. BTC’s sales pressure has steadily reduced, allowing for a more stable rally without a major 30-40% correction as often seen in 2017.

Woo noted that it is rough for 2021 as the re-accumulation phase in Bitcoin means that the amount of BTC that could be sold is much lower compared to the previous bull cycle. He he said:

“I have never been so rigorous by 2021. This phase of re-accumulation coincides with the depletion of point market inventory that is approximately 2 times longer and deeper than the last cycle. It will send BTC.”

On top of the declining Bitcoin reserve in the exchange, Woo has found that HODLers are “stronger”. In 2017, the amount of capital gain invested in Bitcoin was about $ 0.25. That figure rose to $ 0.35 in 2020, which means more investors expect higher event profits in the future.

Winning the Bitcoin market limit for every dollar invested Source:

Based on a combination of the two optimistic trends in the chain, Woo said Bitcoin could reach a “conservative price” of $ 200,000 for $ 20,000 by the end of 2021.

“At the end of 2021, my main model, which I suggest is $ 200,000 per BTC, is conservative-looking, with $ 300,000 in question. The current market paid an average of $ 7,456 for their coins. You’re all geniuses.”

Bitcoin HODL waves. Source: Glassnode, Unchained Capital

As reported in May, Bitcoin HODL wave data also supports the argument that HODLers in the 2017-2018 bull cycle are not selling at these relatively high prices, including valuable individuals or “whales”.

However, these data suggest that some of the first HODLers between three and seven years ago are profiting from a long BTC rally, increasing their chances of correction in the short term.

Woo called for a massive BTC rally in March 2020

As previously reported by Cointelegraph, Woo has been demanding a long Bitcoin bull race since March 2020.

On March 4, Woo told Max Keizer, the presenter of the RT Keizer Report, that Bitcoin could earn $ 135,000 in bullfights. Then he said:

“The cumulative average price could have been 35 times higher – and that’s the only top spot in Bitcoin’s ten-year history – right now at more than $ 50,000, but it continues to rise for longer.”

The price of Bitcoin was less than $ 4,000 in a “Black Thursday” accident that shocked the market on March 12, since it has quickly recovered.

The trend of the bull that happened in March before the accident seems to be in full swing now that the BTC has recovered from a solid nine-month recovery.

But in the short term, analysts believe that the probability of a recovery of the US dollar could cause Bitcoin a slight delay. After a three-week settlement on the gold market, analysts also see a rebound in precious metals, which could prevent the BTC’s momentum in the short term.