According to on-chain analyst Willy Woo Bitcoin (BTC) price could hit a “conservative” target of $ 200,000 in 2021. The forecast revolves around the fact that older investors appear more confident given the recent rally.
There are two key data points that suggest that Bitcoin’s ongoing rally could explode higher. First, “HODLers” or long-time BTC holders don’t move their funds any longer than in previous rallies. Second, BTC held on exchanges continues to decline, reducing selling pressure.
A bullish accumulation phase of Bitcoin is taking place
Bitcoin accumulation has remained a constant upward trend through 2020. Selling pressure on BTC has steadily decreased, allowing for a more stable rally without major corrections of 30% to 40%, as was often seen in 2017.
Woo noted that he is bullish for 2021 because Bitcoin’s accumulation phase means the amount of BTC that could be sold is much less compared to the previous bull cycle. The said::
“I’ve never been so optimistic about 2021. This accumulation phase coincides with the depletion of the spot market’s inventory, which is roughly twice longer and deeper than the previous cycle. Will send BTC “.
In addition to declining Bitcoin inventories on the exchanges, Woo held the HODLers stronger. In 2017, the profit on the capital invested in Bitcoin was around $ 0.25. That number rose to $ 0.35 in 2020, meaning more investors expect higher returns going forward.
Based on the combination of the two optimistic on-chain trends Woo said Bitcoin could hit a “conservative price” of $ 200,000 by the end of 2021. He explained:
“My top model, which is proposing $ 200,000 per BTC by the end of 2021, appears to be conservative. $ 300,000 is out of the question. The current market paid an average of $ 7,456 for its coins. You are all geniuses. “
As reported in May, Bitcoin’s HODL wave data also supports the argument that HODLers from the 2017-2018 bull cycle did not sell at these relatively high prices, including wealthy individuals or “whales.”
However, this data also suggests that some past HODLers made a profit three to seven years ago after a lengthy rally in BTC, increasing the chances of a short-term correction.
Woo called for a massive BTC rally in March 2020
As Cointelegraph has already reported, Woo has been defining an expanded upward trend for Bitcoin since March 2020.
On March 4, Woo Max Keizer, host of RT’s Keizer report, announced that Bitcoin could hit $ 135,000 on the uptrend. He said then:
“They could hit 35 times the cumulative average price, and that has actually hit all of the top levels in Bitcoin’s decade-long history. It’s currently above $ 50,000, but the longer it takes, the longer it goes.”
Although the price of Bitcoin fell to less than $ 4,000 on a “Black Thursday” decline on March 12th that shocked the market, it has since rebounded rapidly.
The uptrend that was supposed to be in the March pre-crash now appears to be in full swing after BTC’s solid nine-month rally.
But in the short term, Analysts believe that the likelihood of a recovery in the US dollar could result in a minor retracement in Bitcoin. After the largest three-week sell-off in the gold market, analysts also see the rally in the precious metal, which could halt the momentum of BTC in the short term.