Bitcoin (BTC) price could reach a target of $ 200,000 in 2021, according to renowned analyst Willy Woo. The analyst says this goal is “conservative.” The forecast revolves around long-term traders looking more confident in the recent rally.
According to the analyst, there are two important data points that show that Bitcoin’s ongoing rally can continue and explode. The first is that HODLers – long time BTC holders – hold their funds longer than previous rallies. The second is that the amount of BTC held in the stock exchanges continues to decrease, which reduces the selling pressure.
Re-accumulation phase occurs while Bitcoin is on the rise
Bitcoin’s “re-accumulation” remained a consistent uptrend throughout 2020. It has consistently eased the selling pressure on BTC and allowed for a more stable rally without the big 30-40% correction that was common in 2017. Woo said that Bitcoin’s re-accumulation phase is “bullish” for 2021, as it means that the amount of BTC that can be sold is much lower compared to the previous bull cycle, that is, it predicts an upward trend for cryptocurrency: “FOR 2021 I HAVE NEVER BEEN BULLISH THAT TILL. THIS REPAIR PHASE IS ABOUT 2 TIMES LONG WITH SPOT MARKET DEPLOYMENT; IT COLLES DEEPER THAN THE LAST CYCLE. WE WILL FIRE BTC. ” In addition to decreasing Bitcoin reserves on exchanges, Woo stated that he saw HODLers being “stronger”.
In 2017, the amount of earnings per capital amount invested in Bitcoin remained around $ 0.25. This figure increased to $ 0.35 in 2020, which means more investors are looking for bigger profits in the future.
Based on the combination of the two optimistic on-chain trends, Woo said that Bitcoin could achieve a price of $ 200,000 by the end of 2021. Moreover, he called this price “conservative,” meaning it hinted at higher levels that could be seen:
Bitcoin HODL wave data supports the argument that HODLers, including “whales” in the 2017-2018 bull cycle, are not selling at these relatively high prices. However, these data also show that some older HODLers from three to seven years ago made a profit after a long BTC rally, which increased the chances of a short term correction.