Willy Woo says Bitcoin could reach $200,000 by 2021 because long-time investors are more confident of the boom underway.
According to network analyst Willy Woo, the price of Bitcoin (BTC) can reach a „conservative“ goal of $200,000 by 2021. The forecast revolves around the fact that long-time investors seem more confident in the recent high.
There are two key data points that suggest that Bitcoin Billionaire continued high could explode further. First, HODLers, or longtime BTC holders, are not moving their funds any longer than previous highs. Second, BTC held in exchanges continues to decline, which reduces selling pressure.
Bitcoin’s bullish reacumulation phase is happening
The reacumulation of Bitcoin has maintained a consistent upward trend throughout 2020. It has continuously lowered sales pressure at BTC, allowing for a more stable rise without major corrections of 30% -40%, as often seen in 2017.
Woo noted that he is optimistic for 2021 because the Bitcoin recompilation phase means that the amount of BTC that could be sold is much smaller compared to the previous bullish cycle. He said:
„I’ve never been so optimistic for 2021. This recompilation phase coincides with the depletion of the spot market stock about 2x longer and deeper than the last cycle. He will send BTC. ”
Above Bitcoin’s dwindling exchange reserve, Woo discovered that HODLers are „holding themselves stronger“. In 2017, the amount of gain per amount of capital invested in Bitcoin hovered around $0.25. This figure increased to $0.35 by 2020, which means more investors expect higher profits in the future.
Bitcoin market capitalization gain per dollar invested.
Based on the combination of the network’s two optimistic trends, Woo said Bitcoin could reach a „conservative price“ of $200,000 by the end of 2021. He explained:
„My Top Model suggesting $200k per BTC by the end of 2021 seems conservative, $300k is not out of the question. The current market on average paid $7456 for their currencies. You are all geniuses. ”
Bitcoin HODL waves. Source: Glassnode, Unchained Capital
As published in May, Bitcoin’s HODL wave data also support the argument that HODLers in the 2017-2018 bull cycle are not selling at these relatively high prices, including high net worth individuals or „whales“.
However, these data also suggest that some previous HODLers from three to seven years ago are making a profit after a prolonged BTC recovery, increasing the chances of a short-term correction.
Woo predicted BTC rally in March 2020
As the Cointelegraph previously published, Woo has been forecasting a Bitcoin high run since March 2020.
On March 4th, Woo told Max Keizer, host of the RT Keizer Report, that Bitcoin could reach US$ 135,000 high. He said at the time:
„You can go 35 times the cumulative average price – and that really took all the tops in Bitcoin’s ten-year history – now it’s over $50,000, but it keeps rising the longer it lasts“.
Although the price of Bitcoin fell to less than $4,000 on March 12th in a „Black Thursday“ crash that shocked the market, it has recovered quickly since then.
The upward trend that was about to happen in March, before the crash, seems to be in full swing now, after BTC’s strong nine-month recovery.
But in the short term, analysts believe that the likelihood of a recovery in the US dollar could cause Bitcoin to suffer a small setback. After the largest three-week sell-off in the gold market, analysts also see the precious metal recover, which could paralyse BTC’s momentum in the short term.