Willy Woo, a leading analyst in the digital currency market, citing indicators within the Bitcoin chain, believes that there is a possibility of a sudden jump to the range of $ 50,000 to $ 60,000.
to the Report Coin Telegraph, Willy Woo believes that given the situation of several different bitcoin price indices, it is likely that the current market rally will continue.
In his latest newsletter, he talks about his expectation that the price of Bitcoin will reach between $ 50,000 and $ 60,000. According to him, the price of Bitcoin reached its quarterly high of 42,000, which had fallen below the $ 30,000 psychological support a few days earlier. Willie wrote:
My expectations are similar to the historic $ 20,000 peak of Bitcoin in January. Now the price is between 40,000 and 42,000 days (maximum 2 weeks) to cross the resistance barrier. Then move to $ 50,000 much faster. $ 50,000 to $ 60,000 is the next major price stabilization range.
Decrease in bitcoin supply
The price of bitcoin rose in July with talks by Ilan Musk, Jack Dorsey and Cathie Wood. Other factors that accelerated the rise in bitcoin prices were rumors of bitcoin acceptance by Amazon; A rumor that was later rejected by the company.
In the current situation, Bitcoin reached the level of $ 42,600 when the previous day, Jerome Powell, the head of the Federal Reserve, spoke at a news conference about the possible inflation shock. Following the talks, many bitcoin buyers used the digital currency as a refuge against rising consumer prices.
It should not be forgotten that Bitcoin began to recover below $ 30,000 at a time when its liquidity supply shock was rising. In other words, at this time, the bitcoin stock of exchanges was declining. According to Willow Woo, investors were looking to make a long-term investment by taking their digital currencies out of exchanges.
Willy Woo wrote on Sunday, referring to the difference between the available supply and the price of bitcoin:
Today, the criterion for the amount of liquid bitcoins is the level at which the price should be $ 50,000. Despite a 44% jump in 2 weeks, the price of Bitcoin is still much lower than it should be.
Return of the Miners
China announced three months ago that it would ban bitcoin mining. After the announcement, we saw a decrease in the price of bitcoin. The Chinese government’s decision paralyzed bitcoin mining in the country, with China accounting for more than 50 percent.
Analytical platforms reported that miners were forced to sell part of their bitcoin inventory to offset their additional costs. However, evidence shows that the trend of net accumulation of bitcoin miners changed in May.
According to Wu, bitcoin miners continued to accumulate bitcoins in July. He pointed to the Bitcoin Hashbar benchmark, which monitors changes to the Bitcoin hash rate, saying it was being raised for the first time since the mining ban in China. He writes about this:
The revival of the bitcoin hash bar indicates that the sale of bitcoins by miners has ended. Miners generally start selling bitcoins when their business stops.
The revival of this bar usually paves the way for several months of bitcoin volatility. This index has a very good record in determining the price of bitcoin.
Increase the activity of whales
According to Wu, last week, as bitcoin prices rose from $ 29,300 to $ 42,600, we saw a large volume of whale purchases.
Whales are individuals or entities with a bitcoin balance of more than 1,000 units. It cannot be said that whales alone have such an impact on the bitcoin price trend, but when several whales shop at the same time as small traders, we will see strong uptrends.
According to Willy Woo, all investors (bitcoins) have been buying Bitcoin for nine consecutive days. This has been unprecedented in the life of Bitcoin. He writes about this:
The fact that all investment groups are currently buying is highly bullish. Who is the seller when everyone is shopping? The sellers are the traders. The sale of currencies by traders reduces the stock of speculation in instant exchanges.